Node:Initial and terminal conditions, Next:Shocks on exogenous variables, Previous:Model declaration, Up:Commands
Used in perfect foresight mode, the types of forward-loking models for which DYNARE was designed require both initial and terminal conditions. Most often these initial and terminal conditions are static equilibria, but not necessarily.
One typical application is to consider an economy at the equilibrium, trigger a shock in first period, and study the trajectory of return at the initial equilbrium. To do that, one needs initval and shock(see next section).
Another one is to study, how an economy, starting from arbitrary initial conditions converges toward equilibrium. To do that, one needs initval and endval;
For models with lags on more than one period, the command histval permits to specify different historical initial values in different periods.