Dynare forums

Hello,

How can we include t term in the equation. For example; in Kaltenbrunner and Lochstoer (2010), the productivity equation is given by Zt = exp (mu x t + zt)

If I write the code in Dynare,

Z=mu*t+z;

But does dynare read t as the tTH period value where t=1,2.....

If it does not, how can I can specify the t variable in the dynare code.

Looking forward to your reply.

Best,
Ammu

Are you talking about a finite horizon model or an infinite horizon one? If the latter, you need to detrend the model first by making use of growth rates that do not involve t.