predetermined_variables

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predetermined_variables

Postby najafi » Thu Mar 10, 2016 9:45 pm

hello every body;
i was confusing in writing predetermined variable in dynare; in reference manual(page 13) we have an example with this content:

Example
The following two program snippets are strictly equivalent.
Using default Dynare timing convention:
var y, k, i;
...
model;
y = k(-1)^alpha;
k = i + (1-delta)*k(-1);
...
end;
Using the alternative timing convention:
var y, k, i;
predetermined_variables k;
...
model;
y = k^alpha;
k(+1) = i + (1-delta)*k;
...
end;

it seems i should write the predetermined variable in this format (k(+1)-k=....)
but in other page in reference manual(page 21); the author said that variables
declared as predetermined will be lagged on period back


"the timing convention of predetermined variables will have been changed to the default Dynare timing convention; in other words, variables declared as predetermined will be lagged on period back"

finally how can i write predetermined variables in dynare?
thanks for helping me.
najafi
 
Posts: 4
Joined: Thu Mar 03, 2016 8:34 pm

Re: predetermined_variables

Postby jpfeifer » Fri Mar 11, 2016 6:53 am

The second statement is about Dynare's internal treatment and output. It does not affect the way you enter variables to Dynare. There, only the statement on page 13 applies.
So think about whether you use beginning or end of period stock notation and then either use the predetermined_variables command to transfer the beginning of period stock notation to Dynare's convention or use the end of period stock notation without the predetermined_variables command.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany

Re: predetermined_variables

Postby najafi » Fri Mar 11, 2016 8:05 am

thank you very much
then i sholud write every predetermined variable in this format (k(+1)-k) in dynare
najafi
 
Posts: 4
Joined: Thu Mar 03, 2016 8:34 pm

Re: predetermined_variables

Postby jpfeifer » Sun Mar 13, 2016 11:35 am

No. You have to pick the timing consistent with the timing convention you want to use. Either
1. (k(+1)-k) with predetermined_variable k;
or
2. (k-k(-1)) without the predetermined_variable command

I also do not understand why you use first differences.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany


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