How to Shut Down the Expectation Operator?
Posted: Tue Oct 09, 2012 11:28 amHi, I know that Dynare automatically puts E_{t} in front of all expressions. I am working with lengthy expressions and it is very helpful to use aux variables for some of terms but I need to keep them as original random variables and not the expected values (since I am doing non-liner transformations before taking the expectation). The simple example would be:
u= X(+1);
Z = E(u^{2});
Under the default setup Dynare will calculate Z= E_{t} ( [E_{t}(X_{t+1})]^{2} ) while I want Z= E_{t} [ (X_{t+1})^{2} ] .
In general, is there any trick to use a short notation (like an aux var) for messy terms containing "t+1" variables? (In the case of time "t" variables it is trivial.).
Thank you
u= X(+1);
Z = E(u^{2});
Under the default setup Dynare will calculate Z= E_{t} ( [E_{t}(X_{t+1})]^{2} ) while I want Z= E_{t} [ (X_{t+1})^{2} ] .
In general, is there any trick to use a short notation (like an aux var) for messy terms containing "t+1" variables? (In the case of time "t" variables it is trivial.).
Thank you