I have both ct (consumption in period t) and ct+1 (Expected consumption in period t+1).
Could I ask :
- how to get the smoothed ct+1 after estimation ?
- If Dynare does NOT treat ct+1 as second period of ct , then how does Dynare do with ct+1?
Many thanks in advance
to get the smoothed ct+1 define a new endogenous variable (call it as you want) as follows
c_t_1 = c(+1);
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));