I started working with dynare and I’ve some difficulties.
I would like to know if the non-linear NKPC has a specific writing? or how to write the non-linear NKPC in the model block?
I would like also to now how to write the conditional expectation?
Thank you for your help
For a NKPC based on Calvo pricing, you need to construct two auxiliary forward-looking variables, in order to transform the first order condition on prices in a manner usable in Dynare. Many recent papers give the equations.
Also note that you never need to explictly write the conditional expectation operator: it is implicit. Note that it means that the conditional expectation operator applies to the whole equation, not to parts of it.