BGG model with investment delays.

[lipetty]

hi, everyone.do you ever copy the BGG(1999) model with investment delays.In dynare code ,if i set the investment with a head(equation 4.19),then ,the b_k condition is not satified,so ,how can i modify it ,thank you !

[peter487]

This seems to do the trick. Put this instead of equation 4.19

Code: Select all

q = psi*(i2 - k(-1));//4.19
i2(-1) = i;

Change your var declaration to

Code: Select all

var y c i g ce n rk r q k x a h pi rn v i2;

[lipetty]

thank u very much. I get it!