Improve on documentation regarding treatment of predetermined variables
parent
025f0d5bf8
commit
0d8fce0847
|
@ -1166,6 +1166,20 @@ are supposed to be decided one period ahead of all other endogenous
|
||||||
variables. For stock variables, they are supposed to follow a ``stock at
|
variables. For stock variables, they are supposed to follow a ``stock at
|
||||||
the beginning of the period'' convention.
|
the beginning of the period'' convention.
|
||||||
|
|
||||||
|
Note that Dynare internally always uses the ``stock at the end of the period''
|
||||||
|
concept, even when the model has been entered using the
|
||||||
|
@code{predetermined_variables}-command. Thus, when plotting,
|
||||||
|
computing or simulating variables, Dynare will follow the convention to
|
||||||
|
use variables that are decided in the current period. For example,
|
||||||
|
when generating impulse response functions for capital, Dynare
|
||||||
|
will plot @code{k}, which is the capital stock decided upon by
|
||||||
|
investment today (and which will be used in tomorrow's production function).
|
||||||
|
This is the reason that capital is shown to be moving on impact, because
|
||||||
|
it is @code{k} and not the predetermined @code{k(-1)} that is displayed.
|
||||||
|
It is important to remember that this also affects simulated time
|
||||||
|
series and output from smoother routines for predetermined variables.
|
||||||
|
Compared to non-predetermined variables they might otherwise appear
|
||||||
|
to be falsely shifted to the future by one period.
|
||||||
@examplehead
|
@examplehead
|
||||||
|
|
||||||
The following two program snippets are strictly equivalent.
|
The following two program snippets are strictly equivalent.
|
||||||
|
|
Loading…
Reference in New Issue