Page 1 of 1

BGG model with investment delays.

PostPosted: Mon Sep 17, 2012 2:10 pm
by 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 !

Re: BGG model with investment delays.

PostPosted: Mon Sep 17, 2012 2:40 pm
by 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;

Re: BGG model with investment delays.

PostPosted: Tue Sep 18, 2012 2:16 pm
by lipetty
thank u very much. I get it! :P