Multiple Steady States
Posted: Thu Aug 21, 2008 3:10 amHello, I'm a new user of Dynare and have the following problem. My model
has several possible steady states, but using a certain set of equations I can pin down one that I'm interested in. The equations that describe the system outside the steady state (declared under model;) are the ones that allow for different steady states.
So what I did is that I'm giving dynare the exact steady state I want it to use to linearize around, hence I'm not using the option steady; but it turns out that although I don't ask for it to find the ss but use the one I'm giving, when I run stoch_simul, it tries to calculate a ss anyways, but obviously it is throwing the following error:
Impossible to find the steady state. Either the model doesn't have a unique steady state of the guess values are too far from the solution.
Any ideas on how to solve this problem? so that I can use my chosen ss, and make dynare linearize around it?
Thank you so much in advance for any ideas,
Paulina
has several possible steady states, but using a certain set of equations I can pin down one that I'm interested in. The equations that describe the system outside the steady state (declared under model;) are the ones that allow for different steady states.
So what I did is that I'm giving dynare the exact steady state I want it to use to linearize around, hence I'm not using the option steady; but it turns out that although I don't ask for it to find the ss but use the one I'm giving, when I run stoch_simul, it tries to calculate a ss anyways, but obviously it is throwing the following error:
Impossible to find the steady state. Either the model doesn't have a unique steady state of the guess values are too far from the solution.
Any ideas on how to solve this problem? so that I can use my chosen ss, and make dynare linearize around it?
Thank you so much in advance for any ideas,
Paulina