13-05-2011, 03:51 AM
Dear Karen,
I think the answer depends on the way you run the TIMES model. For some discussion of the different modes of running TIMES, see Part I of the Documentation, page 30.
The standard way of running TIMES models is with perfect foresight, but TIMES can also be run in a time-stepped fashion, where the model has foresight only over a limited portion of the horizon, say one period. Another way to introduce limited foresight is the Stochastic Programming option of TIMES, where the model may only assume probabilities for the future states of the world. (Contrary to what the documentation says, both of these alternative modes are currently available in TIMES.)
In the perfect foresight mode, I think it is correct to say that the model will see all the future prices, irrespective of them being exogenous or endogenous.
Best wishes,
Antti
I think the answer depends on the way you run the TIMES model. For some discussion of the different modes of running TIMES, see Part I of the Documentation, page 30.
The standard way of running TIMES models is with perfect foresight, but TIMES can also be run in a time-stepped fashion, where the model has foresight only over a limited portion of the horizon, say one period. Another way to introduce limited foresight is the Stochastic Programming option of TIMES, where the model may only assume probabilities for the future states of the world. (Contrary to what the documentation says, both of these alternative modes are currently available in TIMES.)
In the perfect foresight mode, I think it is correct to say that the model will see all the future prices, irrespective of them being exogenous or endogenous.
Best wishes,
Antti