Recursive Preferences in Dynare ++

This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location where you will have to reset your password.
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.

Recursive Preferences in Dynare ++

Postby japoorva » Mon Feb 10, 2014 3:18 pm

Dear all,
I am trying to use Dynare++ to solve optimization problem with epstein -zin preferences (similar to Colacito Croce 2012) in Dynare ++.
How should I enter the objective function? It seems taking clue from Dynare++ user guide that once we enter the objective function and discount factor, dynare++ automatically considers it to be a infinite horizon problem with separable utility.
Because the example in user guide deals with separable utility function, I am not sure how can I modify that for recursive preferences.

Should I enter objective as U and define U in the model block?
Can anybody help?
Thanks
japoorva
 
Posts: 6
Joined: Tue Apr 23, 2013 11:14 pm

Re: Recursive Preferences in Dynare ++

Postby jpfeifer » Mon Feb 10, 2014 3:47 pm

------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany

Re: Recursive Preferences in Dynare ++

Postby japoorva » Fri Feb 14, 2014 5:10 pm

Hi,
Thanks for the reply. I understand how to enter lagged expectation. My precise question was how to enter utility function in "Objective Block" .
Thanks in advance
japoorva
 
Posts: 6
Joined: Tue Apr 23, 2013 11:14 pm


Return to Dynare contributions and examples

Who is online

Users browsing this forum: No registered users and 1 guest