Dynare forums

Hi there,

I'm reading the official tutorial of Dynare++ by Ondra Kamenik, link http://www.dynare.org/documentation-and ... torial.pdf

If we take a look at the example on page 3, it's written

Code: Select all

Y = exp(A)*K^alpha*H^(1-alpha);


However, in the official manual of Dynare, the capital stock should be lagged, like

Code: Select all

Y = exp(A)*K(-1)^alpha*H^(1-alpha);


I think these two programs are developed under the same logic, how come the timing assumptions are different. Can anybody confirm that the timing in official Dynare++ tutorial is correct? i.e. we should code in Dynare++ like

Code: Select all

Y = exp(A)*K^alpha*H^(1-alpha);


Thank you very much!
Best

The tutorial is very misleading, because the timing is never mentioned and it uses time to build, which makes it hard to infer the correct timing convention.
The example1.mod from Dynare is in Dynare++

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var a, b, c, h, k, y;
varexo e,u;

parameters beta, rho, alpha, delta, theta, psi, tau, phi;

alpha = 0.36;
rho   = 0.95;
tau   = 0.025;
beta  = 0.99;
delta = 0.025;
psi   = 0;
theta = 2.95;

phi   = 0.1;

model;
c*theta*h^(1+psi)=(1-alpha)*y;
k = beta*(((exp(b)*c)/(exp(b(+1))*c(+1)))*(exp(b(+1))*alpha*y(+1)+(1-delta)*k));
y = exp(a)*(k(-1)^alpha)*(h^(1-alpha));
k = exp(b)*(y-c)+(1-delta)*k(-1);
a = rho*a(-1)+tau*b(-1) + e;
b = tau*a(-1)+rho*b(-1) + u;
end;

initval;
y = 1;
c = 0.7;
h = 0.1;
k = 11;
a = 0;
b = 0;
e = 0;
u = 0;
end;

vcov = [ 0.000081 0.000008;0.000008 0.000081];

order = 2;



which shows that the same timing convention is used as in Dynare itself.

Thank you for clarifying my question.