Dear All,
I was running Dynare code about the replication of the poor’s man condition in the model proposed by Sims (2012).
Everything is fine with the code. I want only to be sure about the number of predeterminated variables to adapt the test for some Dynare files that estimate other models. In the Dynare code, there is only one predetermined variable: K. When I check M_.npred is 4. Could you clarify how Dynare considers 4? Which are these 4 npred?
Thanks so much for your help.
Cheers