Dynare forums

Dear all,
I would like to know how can I proceed to verify if my model is free of unit root issue.
i.e. is there any specific command that I can use to check the consistency of my model in this regard.
Thanks,
Ful

Hi,
I am not aware of a specific command. But if you put check; behind the steady; command, this gives you the eigenvalues of the model at its current parametrization. Usually, an eigenvalue of exactly 1 indicates that you have a unit root in the model.
But note that this way of checking is clearly suboptimal. You as the modeler should be aware of any unit roots in the model, because you specify the model to be either stationary or not, e.g. by specifying a depreciation rate of 0 or using a unit root technology process.

Thanks
Ful