Hello Johannes,
I need to compute this expression. M and D are variables and nu is a parameter. The liquidity shock has support [-1.1]. My understanding is that if f() is uniform I can compute it in closed form. Is there a way to compute this integral using some Dynare command?
Thank you,
How could this be a normal distribution if the shock has bounded support?
Sorry, I wasn’t clear. For that expression, with uniform distribution, I am wondering if there is a command that allows to compute that expression. If I abstract for the bounded support, and let the liq shock has a normal distribution, can it be computed?
For the uniform distribution, there is not. But here the formula should be straightforward to implement. For the normal distribution, Dynare provides commands like normcdf (see the manual).
Sorry for the interruption. I would like to share some formulas.
As jpfeifer said, In both cases it can be computed closed forms. I attach some of these
liqecuaciones.pdf (109.9 KB)
Cordially