I have two general questions:
Does Dynare solve models with inequalities?
I need bound a variable in my model in interval [0,1]. Few others vars I have to make positive.
But it doesn’t work.
How can I bound variables in Dynare?
May I determine exogenous variables within Dynare code?
I’m trying to put an equation for exogenous variable ‘a’ :
a = 0.9*a(-1);
but it results error: “exogenous variable has lag…”.