How to Shut Down the Expectation Operator?

Dynare help (legacy posts)
1

Hi, I know that Dynare automatically puts E_{t} in front of all expressions. I am working with lengthy expressions and it is very helpful to use aux variables for some of terms but I need to keep them as original random variables and not the expected values (since I am doing non-liner transformations before taking the expectation). The simple example would be:

u= X(+1);

Z = E(u^{2});

Under the default setup Dynare will calculate Z= E_{t} ( [E_{t}(X_{t+1})]^{2} ) while I want Z= E_{t} (X_{t+1})^{2} ] .

In general, is there any trick to use a short notation (like an aux var) for messy terms containing “t+1” variables? (In the case of time “t” variables it is trivial.).

Thank you

2

See [Expected value of a power)

3

Thank you. I guess I was making it too complicated. After reviewing the previous posts you suggested, I realized that it is possible to play with the order of aux variables and make the E_{t} inside or outside of the expression, in a way we need.