Hi everyone,
I hope you are fine.
I am trying to replicate a paper which considers expectations on a previous period about future stance of the economy (time t+1) to determine time t values. I was wondering if it’s possible to tackle this approach in dynare.
For example, in this paper, the IS curve depends on the expected real real rate on period before. This is made in order to impede monetary policy shocks affect output gap and thus inflation in the current period. Instead, the effects of the monetary policy shock will appear at time t+1. This is to make the data generating process consistent with typical short run assumptions when identifying monetary policy shocks.
The paper can be found here, (page 11): https://www.banxico.org.mx/publicaciones-y-prensa/documentos-de-investigacion-del-banco-de-mexico/{A36D930A-3978-E305-0810-CB4ABF1DC35F}.pdf
Regards,
Sebastián