declaring var indexed to time and time variation(delta time)

[kval]

hey guys,

first of all, sorry about this lame question but I'm totally noob ... so, my problem is:

how to declare an time and time variation (delta time) indexed variable, like

p(t,n)= A(n)+B(n)X(t)

which is a linear equation for pricing a zero-coupon (default free) bond at time "t" that pays 1 at time "t+n". the major problem is that when you advance to "t+1" "n" becomes "n-1"...

any sugestions?

[MichelJuillard]

Unfortunately Dynare isn't meant to handle continuous time problems.

Best

Michel

[kval]

actually the problem is in discrete time... sorry not have mentioned it before...

[MichelJuillard]

Then you need as many P variables as you have maturities.

P1_t = A1+B1*X_t
P2_t = A2+B2*X_t

and so on. In Dynare you won't write the _t index. Of course, you need all the equilibrium conditions...

Best,

Michel

[kval]

Ohhh... thx for the quick answer...