# A timing problem in the limited participation model

HI, EVERYONE,
I AM WOKRING ON THE LIMITIED PARTCIPATION MODEL.
THE ESSENTIAL MEANING OF THIS KIND OF MODEL IS THAT HOUSEHOLD MAKE THEIR SAVING-CONSUMPTION DECISION BEFORE THE REALIZATION OF MONEY SHOCK, SO MONEY MATTERS FOR LOAN SUPPLY.
THE FIRST ORDER CONDITION IS A KIND OF THAT the basic eular equation has a subscript {T-1}on both sides of the equation, which means that household has to decide C_t at the end of t-1.
SO, THE PROBLEM IS, HOW TO WRITE THIS KIND OF EULAR EQUATION IN DYNARE, ESPECIALLY FOR THE TIMING?
THANK YOU.

Without knowing the exact model, this is hard to tell. But generally, the first order conditions in Dynare pin down variables at time t when the decisions are made. In the type of model you describe, the consumption decision at time t is made before the realization of the money supply shock is known. This suggests giving consumption a t-timing and the money shock a (t+1)-timing in the Euler equation. In other equations, consumption will most probably be showing up with at t-1 timing timing, because from the perspective of other decisions, the consumption decision will be predetermined.
But of course, the exact timing structure depends on the rest of the model.

thanks a lot.
in fact the limited participation model I have referred to is CEE(1997):Sticky price and limited participation models of
money: A comparison, Chiristiano(1992), Furst(1992) and so on, which model the liquidity effect of monetary policy.
I have attached one typical this kind of modeling paper.
the key equation is equation(11) in page 5.
you could have a look at it.
SSRN-id1082874 (1).pdf (120 KB)

See the manual, Section 4.3.2 Operators. There you have the

operator that should allow you to code such an equation without having to deal with auxiliary variables yourself.

THAT REALLY HELPS.
THANKS!