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Re: Ramsey policy - steady state model

PostPosted: Thu Sep 01, 2016 12:57 pm
by Arthur Thoby
Just a quick check but I do need to lag all predetermined variables such as capital when plotting their time path against say output or labour, right?

Re: Ramsey policy - steady state model

PostPosted: Thu Sep 01, 2016 5:30 pm
by jpfeifer
Short answer: yes.
Longer answer: your capital stock in the model used for production at time t is
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k(-1)

What dynare plots is
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k(0)

Therefore, if you are thinking about stock at the beginning of period notation, you need to lag the path of capital, because you want to plot k(-1) and not k(0)

Re: Ramsey policy - steady state model

PostPosted: Fri Sep 02, 2016 8:28 am
by Arthur Thoby
Thanks Johannes, I wanted to check that the adjustment was not carried out by Dynare.