Hello,

I am trying to solve a model that looks like

Ay_t + E_t (y_{t+1}) = Var_t(y_{t+1})

where y_t = Bz_t + \varepsilon_{t+1} and z_t is a vector of state variables that follows an AR(1) process. I would like to solve for B.

Is there a paper or code that I can refer to that uses Dynare to solve a problem similar to this one?

Many thanks in advance.