Steady state restrictions
Posted: Thu Mar 21, 2013 3:23 pm
I am trying to implement ECB's New Area Wide Model (NAWM). The model in my .mod file is already log-linearized but I have to take into account a growth rate of labour productivity of 2% at the steady state.
I tried adding equations to my model block using the STEADY_STATE() expression, but the result is that I have more equations than endogenous variables because of it. Is there any other way to use restrictions on a steady state?
I tried adding equations to my model block using the STEADY_STATE() expression, but the result is that I have more equations than endogenous variables because of it. Is there any other way to use restrictions on a steady state?