End of period convention and decision lag

[binwang4]

Yes, I just ask a similar question but use the basic rbc model as an example. Would you please take a look?

About the predetermined and non predetermined variable

All the variables that are known or determined before period t should be subscripted as time t variable. A typical example is the capital k in basic RBC model. The resource constraint is: k(t+1) = A*k(t) - c(t) In dynare, we should express k as predetermined variable. So the model part equation should be expressed as: k = A*k(-1) - c My question is, what if the capital stock k(t+1) undergoes an exogenous shock at the beginning of period t+1, as if: k(t+1) = s(t+1)(Ak(t)-c(t)) (1) Under thi…