Denoting First Derivative in Dynare

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Denoting First Derivative in Dynare

Postby danishussalam » Fri May 09, 2014 5:12 pm

Can someone please tell me how do we write in dynare if a symmetric equilibrium condition has first derivative in it?

for instance : the equation q = 1-s-s1*lambda(+1)

where s1 is the first derivative of s. Should I specify the first derivative as a variable or as a parameter?
danishussalam
 
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Re: Denoting First Derivative in Dynare

Postby jpfeifer » Mon May 12, 2014 12:40 pm

Typically, there is another equation defining that derivative. Hence, it is a variable. For example, lambda typically is the derivative of the utility function with respect to consumption and we have a defining equation of the type:
Code: Select all
lambda=1/c;
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Re: Denoting First Derivative in Dynare

Postby danishussalam » Mon May 12, 2014 4:34 pm

Thanks! I got it now.. I am now denoting both s and s1 as variables.
danishussalam
 
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