Stoch_simul - solving around the non-stochastic steady state
Posted: Tue Jul 31, 2012 1:18 pmIs there a way to make stoch_simul solve the model around a point that is not the non-stochastic steady state?
Some asset pricing models are very sensitive to the approximation point, and it is desirable to approximate the first-order conditions around the stochastic (risky) steady state. Is it possible to allow stoch_simul to solve the model around an arbitrary approximation point?
Thank you.
Some asset pricing models are very sensitive to the approximation point, and it is desirable to approximate the first-order conditions around the stochastic (risky) steady state. Is it possible to allow stoch_simul to solve the model around an arbitrary approximation point?
Thank you.