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welfare computation

PostPosted: Thu Apr 12, 2007 7:30 am
by qixiang_chn
Hi,

Suppose U is my utility function, if I want to compute conditional expectation of utility, should I just create a new variable con_util = U + bet* U(+1), where bet is the subjective discount factor, and then just read the mean of con_util from the results reported by dynare in a second order approximation?

Thanks.

PostPosted: Sat Apr 21, 2007 4:55 pm
by MichelJuillard
Yes, you can do that

Kind regards

Michel