I’m sorry to bother you all with what should be a silly question. I have looked at the reference manual and the user guide, but I still don’t exactly understand something.
When I have an exogenous variable to my model, I intuitively modelled it as varexo. But as I looked at the manual, I found (dynare.org/manual/index_18.html):
Does that mean that if I have an exogenous variable (in the economic sense) that has a steady state value different than zero I should use it as an endogenous variable in my .mod file? Thanks in advance.
I am a little late because of couple of days of vacation without internet, but thank you jpfeifer.
If I understand your answer, exogenous variables (in the economic sense) are modelled as a random variable with zero (or as you mentioned I can change the mean). But if this variable allows a budget constraint to be held, should I still consider it as a varexo in my .mod code?
I apologize in advance if my question might be obvious to advanced users.