Hi,
How to represent the variable Et-1 (Xt) in Dynare? Can I just write it as Xt?
Thanks a lot!
Usually, in macroeconomics, expectation is for the future and not for the past. For example
\texttt{E_t X_t+1}
in Dynare \texttt{X(+1) }
Define:
y = x(+1)
Then refers to E_t-1 X-t as y(-1).
I think this should work.
In theory we have
\texttt {y = E_t X(t+1)}
In dynare \texttt {X(+1)}
@Gabrielr12’s answer is correct. If you want Dynare to do the work of introducing the auxiliary variable, you can use the EXPECTATION operator (see the manual):