# Contemporaneous Expectations

**URL:** <https://forum.dynare.org/t/contemporaneous-expectations/19619>\
**Category:** Stochastic simulations\
**Created:** [11 January 2022 14:38 UTC](https://forum.dynare.org/t/contemporaneous-expectations/19619 "2022-01-11T14:38:37Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![Flo24](https://forum.dynare.org/letter_avatar_proxy/v4/letter/f/ea666f/32.png) [@Flo24](https://forum.dynare.org/u/Flo24)\
**Post date:** [11 January 2022 14:38 UTC](https://forum.dynare.org/t/contemporaneous-expectations/19619/1 "2022-01-11T14:38:38Z")

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Dear Dynare Forum community,

I would like to include a variant of the taylor rule in my model using Contemporaneous Expectations, so:

r = rn + phi\_pie \* pie^e\_t + phi\_y \* ytilde^e\_t

Now my question would be how to realize these Contemporaneous Expectations in Dynare.

Thanks in advance!  
With kind regards  
Flo24

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [11 January 2022 15:48 UTC](https://forum.dynare.org/t/contemporaneous-expectations/19619/2 "2022-01-11T15:48:57Z")

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How do you define

> [@Flo24](#):
>
> Contemporaneous Expectations

?

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<div class="post-metadata">

**Author:** ![Flo24](https://forum.dynare.org/letter_avatar_proxy/v4/letter/f/ea666f/32.png) [@Flo24](https://forum.dynare.org/u/Flo24)\
**Post date:** [11 January 2022 16:28 UTC](https://forum.dynare.org/t/contemporaneous-expectations/19619/3 "2022-01-11T16:28:54Z")

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The expectation of pie at time t, for example, that I made at time t-1.

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<div class="post-metadata">

**Author:** ![Max1](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/e99b99/32.png) [@Max1](https://forum.dynare.org/u/Max1)\
**Post date:** [11 January 2022 17:25 UTC](https://forum.dynare.org/t/contemporaneous-expectations/19619/4 "2022-01-11T17:25:55Z")

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Do you mean E\_t y\_{t+1} or E\_{t-1}y\_{t+1}?

The first one is already implicitly implemented in Dynare if you write down your equations.

The lagged expectation operator is implemented as `EXPECTATION(-1)(y(+1))` .

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<div class="post-metadata">

**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [12 January 2022 07:33 UTC](https://forum.dynare.org/t/contemporaneous-expectations/19619/5 "2022-01-12T07:33:07Z")

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That also works with

```auto
EXPECTATION(-1)(y)

```

which is E\_{t-1}y\_t

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<div class="post-metadata">

**Author:** ![Flo24](https://forum.dynare.org/letter_avatar_proxy/v4/letter/f/ea666f/32.png) [@Flo24](https://forum.dynare.org/u/Flo24)\
**Post date:** [12 January 2022 11:19 UTC](https://forum.dynare.org/t/contemporaneous-expectations/19619/6 "2022-01-12T11:19:13Z")

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That’s what I was looking for!  
Thanks a lot!