Dynare forums

Hey folks,

just one short question: when I have governmental debt, do i have to declare that debt is a predetermined variable as capital?

Thanks for your help.

Daniel

Usually yes. In the typical paper beginning of period stock notation, b_t+1 like k_t+1 is bought at time t and you enter the period t+1 with this stock that provides you with interest without the ability to change it anymore. If you use this timing, it has to be a predetermined variable like capital. If you use Dynare's end of period stock notation, you must not declare it additionally as a predetermined variable.

Thanks for your answer. I have to rethink this.