Is it possible to write the policy functions in Dynare++ having current states defining the measurement of non-state variables? Dynare computes linear policy functions of the form:
y(t) = A x(t-1) + B v(t)
x(t) = C x(t-1) + D e(t)
With some matrix algebra, it is possible to write y(t) as a funcion of x(t), instead of x(t-1). Is it possible to do the same with non-linear policy functions?
Any help appreciated.
Thanks in advance!