Error in Dynare++ official tutorial on timing convention?

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Error in Dynare++ official tutorial on timing convention?

Postby grumpyj » Wed Jun 22, 2016 5:27 pm

Hi there,

I'm reading the official tutorial of Dynare++ by Ondra Kamenik, link http://www.dynare.org/documentation-and ... torial.pdf

If we take a look at the example on page 3, it's written
Code: Select all
Y = exp(A)*K^alpha*H^(1-alpha);


However, in the official manual of Dynare, the capital stock should be lagged, like
Code: Select all
Y = exp(A)*K(-1)^alpha*H^(1-alpha);


I think these two programs are developed under the same logic, how come the timing assumptions are different. Can anybody confirm that the timing in official Dynare++ tutorial is correct? i.e. we should code in Dynare++ like
Code: Select all
Y = exp(A)*K^alpha*H^(1-alpha);



Thank you very much!
Best
grumpyj
 
Posts: 2
Joined: Fri Jun 17, 2016 11:43 am

Re: Error in Dynare++ official tutorial on timing convention

Postby jpfeifer » Fri Jun 24, 2016 4:20 pm

The tutorial is very misleading, because the timing is never mentioned and it uses time to build, which makes it hard to infer the correct timing convention.
The example1.mod from Dynare is in Dynare++
Code: Select all
var a, b, c, h, k, y;
varexo e,u;

parameters beta, rho, alpha, delta, theta, psi, tau, phi;

alpha = 0.36;
rho   = 0.95;
tau   = 0.025;
beta  = 0.99;
delta = 0.025;
psi   = 0;
theta = 2.95;

phi   = 0.1;

model;
c*theta*h^(1+psi)=(1-alpha)*y;
k = beta*(((exp(b)*c)/(exp(b(+1))*c(+1)))*(exp(b(+1))*alpha*y(+1)+(1-delta)*k));
y = exp(a)*(k(-1)^alpha)*(h^(1-alpha));
k = exp(b)*(y-c)+(1-delta)*k(-1);
a = rho*a(-1)+tau*b(-1) + e;
b = tau*a(-1)+rho*b(-1) + u;
end;

initval;
y = 1;
c = 0.7;
h = 0.1;
k = 11;
a = 0;
b = 0;
e = 0;
u = 0;
end;

vcov = [ 0.000081 0.000008;0.000008 0.000081];

order = 2;


which shows that the same timing convention is used as in Dynare itself.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
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Location: Cologne, Germany

Re: Error in Dynare++ official tutorial on timing convention

Postby grumpyj » Fri Jun 24, 2016 7:32 pm

Thank you for clarifying my question.
grumpyj
 
Posts: 2
Joined: Fri Jun 17, 2016 11:43 am


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