Perfect Foresight vs. Time-Stepped Approach Antti-L Super Moderator Posts: 403 Threads: 18 Joined: May 2010 06-07-2015, 11:36 AM (This post was last modified: 06-07-2015, 11:56 AM by Antti-L.) Ok, I may be starting to understand the question. If your investment tax in period t+1 is a linear function of the NCAP values in period t, you can use a dynamic user constraint between t and t+1, bounding a flow in period t+1 according to the NCAP in period t, and set a tax on that flow.  Then you can indeed use time-stepped solution with single period steps and a zero overlap to make the model myopic to these delayed taxes. However, be aware that the model is extremely myopic when using non-overlapping time-steps like this.Moreover, as the model is myopic to the taxes, the taxes have no impact on the investment decisions. Therefore, you could equally well leave them out of the model and calculate them exogenously, as the solution would be the same both ways. But maybe I am still misunderstanding the question? « Next Oldest | Next Newest »

 Messages In This Thread Perfect Foresight vs. Time-Stepped Approach - by kramea - 20-03-2015, 11:19 AM Perfect Foresight vs. Time-Stepped Approach - by Antti-L - 20-03-2015, 07:27 PM Perfect Foresight vs. Time-Stepped Approach - by kramea - 05-07-2015, 09:58 PM Perfect Foresight vs. Time-Stepped Approach - by Antti-L - 06-07-2015, 11:36 AM Perfect Foresight vs. Time-Stepped Approach - by kramea - 06-07-2015, 12:54 PM Perfect Foresight vs. Time-Stepped Approach - by kramea - 06-07-2015, 04:48 PM Perfect Foresight vs. Time-Stepped Approach - by kramea - 06-07-2015, 04:55 PM Perfect Foresight vs. Time-Stepped Approach - by Antti-L - 06-07-2015, 06:49 PM Perfect Foresight vs. Time-Stepped Approach - by kramea - 06-07-2015, 07:04 PM Perfect Foresight vs. Time-Stepped Approach - by kramea - 06-07-2015, 07:04 PM

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