Good morning everyone,

I was wondering if Dynare, in a perfect foresight setup, treats the exogenous variables as “constants” if one does not apply shocks to these variables, since they do not react to the model equations.

I often see papers, in a deterministic environment, which assign temporality (the “t”) to exogenous variables in their equations, while these variables are really “constants” and should not be indexed by “t”. That’s just a “drafting issue” I’m asking there.

Thanks!

Best