Please use this identifier to cite or link to this item:
Verona, Fabio
Wolters, Maik H.
Year of Publication: 
Series/Report no.: 
Economics Working Paper 2013-02
Macroeconomic models with sticky information include an infinite number of lagged expectations. Several authors have developed specialized solutions algorithms to solve these models under rational expectations. We demonstrate that it is also possible to implement this class of models in Dynare - a widely used software package for solving dynamic stochastic general equilibrium (DSGE) models. Using the Dynare macro language one can easily construct and change the required large number of lagged expectation terms. We assess the accuracy of simulations run with different truncation points for the lagged expectations terms and find that the solution is reasonably precise even for moderate truncation points.
sticky information
lagged expectations
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
707.13 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.