Dynare forums

Dear all,

I am working on a New-Keynesian DSGE with search and matching. In order to simulate the model, I log-linearized the EQ conditions by hand. The results are somewhat appropriated.

However, I would like to see how the steady state values of some variables react to changes in the parameter values. As far as I see, I need to write the nonlinear model in Dynare, give initial values and let Dynare find the new steady states. Or is there another way of finding the steady state values, e.g. rewrite the equations in steady state or something like that?

As a result, the numerical values are incompatible with some equations...Since I am pretty sure, that the initial guesses are close to the true values, I suppose another problem. I guess the reason is that the model features the standard New-Keynesian equation in its linearized form. However, I do not have a non-linear version of that equation. Could that be my problem?

Many thanks in advance


bieser

Another problem with the nonlinear model is that it involves some ugly guys, e.g. random sampling in each period, expectations of truncated log-normal distribution etc.