Resolving Timing Issues

General DSGE Modeling
1

Hello,

I am new to Dynare. I am having trouble with getting the timing right in my model. My model has a value function iteration and moment updating which interact with each other. I had a few questions:

  1. Suppose I have a variable A whose value at time t is determined at the end of time t-1 and other variables B, C whose values at time t are determined at time t. B today is equal to C today times A today. Then, in my equation relating them, I have B=C*A(-1). Is this the correct way to write this relation?

  2. Can the latex file of the model written by write_latex_original_model help in debugging the timing in the model? Is there any other way to debug the timing?

  3. Is it better to define all variables explicitly instead of having model local variables when trying to get the timing right? I noticed that changing a model-local variable to an explicit variable changes the number of eigenvalues larger than 1 in modulus with the same number of forward-looking variables when I run the check command. Hence the question.

Thanks!

2

Dynare does not support value function iteration. That being said:

  1. Yes, that would be the correct timing. C is predetermined, the rest is not.
  2. Yes, the LaTeX-file is usually helpful.
  3. It should not matter. But you need to use Dynare 4.5.7 or later due to the fixed bug https://git.dynare.org/Dynare/dynare/issues/1602