Hi,
could someone have a look at this post:
http://www.dynare.org/phpBB3/viewtopic.php?f=2&p=9387#p9387 http://www.dynare.org/phpBB3/viewtopic.php?f=2&p=9387#p9387
He/she wants to know whether the Ramsey objective function is conditional or unconditional. The manual is contradictory in this regard. In the description of osr() the expectations operator of the quadratic form E(y'Wy) is unconditional while the constraint uses a conditional expectation.
Moreover, there are some typos in the Optimal policy section that could be fixed:
"Steay state" should "Steady state"
"A element" should be "An element"
"Typical example is choosing inflation or nominal interest rate as an instrument." should be "A typical example is choosing inflation or nominal interest rate as an instrument."
Sorry for not fixing the typos myself, but in Windows I am not able to compile the.
"Johannes Pfeifer " jpfeifer@gmx.de writes:
I don't think there is a contradiction. The expectation of the objective is unconditional because what is minimized is a moment of the unconditional moment of a (supposedly stationary) time series. On the other hand, the constraint defines the dynamics of the time series and therefore has a conditional expectation operator.
Moreover, there are some typos in the Optimal policy section that could be fixed:
[...]
Thanks, I fixed them.
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Johannes Pfeifer -
Sébastien Villemot