BGG model with investment delays

Dynare help (legacy posts)
1

hi, everyone.do you ever copy the BGG(1999) model with investment delays.In dynare code ,if i set the investment with a head(equation 4.19),then ,the b_k condition is not satified,so ,how can i modify it ,thank you !
BGG1.mod (3.16 KB)

2

This seems to do the trick. Put this instead of equation 4.19

q = psi*(i2 - k(-1));//4.19 i2(-1) = i;
Change your var declaration to

3

thank u very much. I get it! :stuck_out_tongue:

4

This works perfectly,but I’m not sure is it reasonable,why we not do the trick on q? Actually I do the trick on q instead, the figure looks weird.