Replicate Small Open Economy SGU 2003

[agustindiaz90]

I want to replicate the SGU model in dynare. There are many post about this topic and the codes are replicated in https://github.com/JohannesPfeifer/DSGE ... 116505323a . But I can´t understand why capital is with a lag in dynares but in SGU model not. For example the product dynamic is write in SGU like (y) =(a)*((k)^alpha)*((h)^(1-alpha)) but in dynare is exp(y) = exp(a)*(exp(k(-1))^alpha)*(exp(h)^(1-alpha)). Why the time of the capital is different?

Thanks

[jpfeifer]

Because of Dynare's timing convention on predetermined variables. See http://www.dynare.org/manual/index_15.html on predetermined_variables.

[agustindiaz90]

Thanks!!