Predetermined variables

[francescosat]

Hi, I am having many troubles with a 2 country rbc, dsge model.

I was wondering if the problem could be in detecting predetermined variables. I have the following endogenous variables:

-Consumption
-Capital
-Capital renting rate
-Labour
-Bond
-Bond rate
-Technology
-Taxation on consumption, labour and capital

I know that capital is predetermined and I am using dynare convention (capital at time t becomes k(-1)). Can you tell me which of the other variables I wrote are predetermined?

Thanks!

[jpfeifer]

Bonds are typically also predetermined. They are a stock like capital.

[francescosat]

Thanks!

I was wondering if also tax on capital and interest rate on capital renting should be considered as predetermined variables since they refer to capital (that is predetermined).

[francescosat]

p.s. I also have Investment

[jpfeifer]

Taxes are either exogenous or depend on other variables and are not predetermined. The same applies to investment.

[francescosat]

Thank you again! I am reading your papers and I am finding it very useful... T