varexo_det

varexo_det — declares exogenous deterministic variables in a stochastic model

Synopsis

varexo_det VARIABLE_NAME [$LATEX_NAME$] [[,] VARIABLE_NAME [$LATEX_NAME$] ...] ;

Description

This optional command declares exogenous deterministic variables in a stochastic model. See Conventions for the syntax of VARIABLE_NAME. Optionally it is possible to give a LaTeX name to the variable.

It is possible to mix deterministic and stochastic shocks to build models where agents know from the start of the simulation about future exogenous changes. In that case stoch_simul will compute the rational expectation solution adding future information to the state space (nothing is shown in the output of stoch_simul) and forecast will compute a simulation conditional on initial conditions and future information.

varexo_det commands can appear several times in the file and Dynare will concatenate them.

Example

varexo m gov;
varexo_det tau;