Computational Economics

, Volume 43, Issue 3, pp 357–370 | Cite as

Sticky Information Models in Dynare



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 Dynare Macro-processor Lagged expectations 



We thank two anonymous referees, the editor (Hans Amman), Stéphane Adjemian, Efrem Castelnuovo, Assia Ezzeroug, Michel Juillard, Alexander Meyer-Gohde and Jouko Vilmunen for very helpful discussions and comments. The views expressed in this paper are those of the authors, and do not necessarily reflect the views of the Bank of Finland. All remaining errors are the authors’ sole responsibility


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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Monetary Policy and Research DepartmentBank of FinlandHelsinkiFinland
  2. 2.CEF.UPUniversity of PortoPortoPortugal
  3. 3.University of Kiel and Kiel Institute for the World EconomyKielGermany

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