Hi,
I am solving difference equation using Dynare.
Now, I would like to set two types of difference equation separately for t=1 and t >1, since with respect to some endogenous variables, FOCs for household for t=1 cannot be defined in the same way as for t >1.
Is it possible?
Thank you in advance.
You need to provide more context. Is this just a matter of the initial condition? Or is the problem non-stationary? Are you doing perfect foresight simulations?
Thank you for your reply !
I was able to solve the problem above by implementing initial conditions on LMP.
When I ask a question next time, I would like to pay attention to what you mentioned !
Thank you and best regards.