How to express the expectation term?

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How to express the expectation term?

Postby iloveshjtl » Wed Mar 16, 2011 5:54 am

I'm new in using Dynare,
1. so I want to know how I write the below expression.

(ex) pi=beta*(1-thetah)*E_t(pi(t+1)) + thetha*pi(t-1) + lambdah*mc + e

where E_t is the current expectation parameter.

In this case, in Dynare code,
pi = beta*(1-thetah)*pi(+1) + thetah*pi(-1) + lambdah*mc + e
is the correct expression?

Is the expectation(E) term expressed as merely parameter(+1), like this?


2. when I was exercising, Dynare warning was expressed as below

Warning: File 'newzealand2_optimal_mh_scale_parameter.mat' not found
Warning: File 'newzealand2/Output' not found
Warning: File 'newzealand2/metropolis' not found

What's the meaning of the above warning? What can I do for solving these problem?
Please help me and thank you for your attetion.
iloveshjtl
 
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Re: How to express the expectation term?

Postby SébastienVillemot » Mon Mar 21, 2011 11:37 am

Concerning your first question: your expression is correct. Dynare puts an implicit E_t operator in front of all equations which, in your case, gives an expression equivalent to the one you want.

Concerning your second question: it’s hard to tell what’s going wrong here. It looks benign, since it’s only warnings and Dynare did not crash.
Sébastien Villemot
Economist at OFCE – Sciences Po
SébastienVillemot
 
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