estimate the model with no closed form steady state
Posted: Tue Aug 30, 2011 10:09 amThere are two types of parameters I want to estimate, one is technology in the steady state A1, A2 and A3 (they are parameters) the other are the driving force in the shock structure. I can not get the closed form of steady state in my model and use a numerical method to get it.
The steady state of variables is pinned down by A1,A2,A3 and other deep parameters which I can easily calibrate. The problem lies in that in the model I use the steady state values such as V_observe= v-vstar, vstar means steay state value. It means for every given A1 A2 A3, I can estimate the driving force, however I do not know how to estimate A1 A2 A3.
How can I deal with it?
The steady state of variables is pinned down by A1,A2,A3 and other deep parameters which I can easily calibrate. The problem lies in that in the model I use the steady state values such as V_observe= v-vstar, vstar means steay state value. It means for every given A1 A2 A3, I can estimate the driving force, however I do not know how to estimate A1 A2 A3.
How can I deal with it?