ramsey_policy and lagged interest rate

As Dynare 4 is now the main version, this forum is now closed. Please, post
on the Dynare Help forum
Forum rules
As Dynare 4 is the current Dynare version, there forum is now close. Post new question in the Dynare Help Forum.

ramsey_policy and lagged interest rate

Postby doctorwes » Tue Jul 22, 2008 1:44 am

I'm experimenting with the test file provided in the OptimalPolicy page in DynareWiki. If I change the equation:

y = delta * y(-1) + (1-delta) * y(+1) + sigma *(r - inf(+1)) + y_;

to use a lagged interest rate:

y = delta * y(-1) + (1-delta) * y(+1) + sigma *(r(-1) - inf(+1)) + y_;

then I get the following error message:

??? Subscript indices must either be real positive integers or logicals.

If instead I try to write something equivalent by modifying all the equations to advance all the other endogenous variables by one lag, i.e.

y(+1) = delta * y + (1-delta) * y(+2) + sigma *(r - inf(+2)) + y_;

then ramsey_policy runs successfully. But is it really legitimate to do this?
doctorwes
 
Posts: 6
Joined: Thu Dec 27, 2007 3:49 pm

Return to Dynare version 4

Who is online

Users browsing this forum: No registered users and 2 guests