Hi Prof, I am new to dynare and I have a puzzle on timing and redefining:
In usual stochastic growth model, suppose I have production function as y=z k^alpha, then in dynare timing it is y=z k(-1)^alpha.
define: m=z alpha k(-1)^(alpha-1), then I focus on m(+1).
Also define: n=z(+1) alpha k^(alpha-1).
My questions are :
- Are m(+1) and n the same? conceptually and numerically?
- How do I interpret the above? Does m refers to realized value, and n refers to expected value? If NOT, how should I construct the expected & realized values in this case?