Hello,
I'm solving a standard RBC model with investment adjustment cost. As a result, lagged investment, i(-1), is supposed to be a state variable. However i(-1) doesn't appear in the policy function for some reason. Is this a bug or am I missing something?
I've attached my mod file.
Thank you!
Dynare forums
Forums for asking questions, posting comments and uploading examples related to Dynare
Missing state variable
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.
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.
3 posts
• Page 1 of 1
Missing state variable
by giangho » Tue Jun 29, 2010 11:16 pm
- Attachments
-
rbc.mod- (956 Bytes) Downloaded 99 times
- giangho
- Posts: 3
- Joined: Tue Jun 29, 2010 11:05 pm
Re: Missing state variable
by jpfeifer » Wed Jun 30, 2010 7:11 am
Hi,
shouldn't there be a first order condition determining the optimal investment? I only see FOCs for consumption, labor and capital.
shouldn't there be a first order condition determining the optimal investment? I only see FOCs for consumption, labor and capital.
- jpfeifer
- Posts: 6940
- Joined: Sun Feb 21, 2010 4:02 pm
- Location: Cologne, Germany
Re: Missing state variable
by giangho » Wed Jun 30, 2010 8:09 am
You're right, I included the wrong equation, sorry.
Thanks a lot for your help!
Thanks a lot for your help!
- giangho
- Posts: 3
- Joined: Tue Jun 29, 2010 11:05 pm
3 posts
• Page 1 of 1
Who is online
Users browsing this forum: No registered users and 7 guests