# Smoothed expected variable

Dear Johannes,

I have both ct (consumption in period t) and ct+1 (Expected consumption in period t+1).

1. how to get the smoothed ct+1 after estimation ?
2. If Dynare does NOT treat ct+1 as second period of ct , then how does Dynare do with ct+1?

Huan

Hi

to get the smoothed ct+1 define a new endogenous variable (call it as you want) as follows

``````c_t_1 = c(+1);
``````

P.

Yes, as Paolo said, you need to define an auxiliary variable storing the expectated value (as one would do in case of Epstein-Zin preferences as well). A more explicit version, using the `EXPECTATION` operator would be

``````c_t_1 = EXPECTATION(c(+1));
``````