Value of Welfare

Dear all,

I have a very stupid question related to the subject of welfare computation in dynare. My plan is to use the consumption equivalence approach and therefore I use a 2nd order approximation of:

welfare_{t} = \beta \,\ welfare_{t+1}+ utility_{t}

In order to compute the consumption equivalence I need the value of welfare_{t} which should be computed by dynare. Do you know how/where I can find this value? Would this be the constant term of the policy and transition function?

Many thanks in advance for your help.



Ok, I should read the posts in this forum first before I start to ask stupid questions. The link below cleared everything up:

1 Like