Options for the Steady command

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Options for the Steady command

Postby mauriceroche » Wed Aug 29, 2007 5:10 pm

Hi Guys,
I was wondering why the different solution options in the steady command will give very different results or none at all.

For example
I used a very simple one sector RBC model with comsumption/leisure choice.
I can solve for the deterministic steady state by hand and entered these values between the initval and end commands.
When I used the Sims solver it produced the correct steady state values.
When I used any of the other options I get either

SOLVE: Iteration 43
Spurious convergence.

or

??? Error using ==> steady_
STEADY: convergence problems

Why is this the case?

I am using the latest version of Dynare 3 and Matlab 7.

regards,
Maurice
mauriceroche
 
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