Model with bonds

[ssalgado]

Hi everyone,

I'm trying to run a SOE with labor market frictions and two sectors. The problem is that agents cab buy one period bonds. I understand that, there is a continuum of steady states starting from any initial condition from bonds and therefore, if I just ask dynare to calculate the steady state without imposing a fixed value for the bonds holding, dynare will not able to calculate the steady state, so I calculate the steady state holding bonds equal to 0. Up to that point everything is fine.
However, now I want to get the IRF when I have the complete model. In that case bonds will change in response to, let say, a productivity shock. However, now dynare wants to calculate the steady state again to make the first order approximation around it.

Is there any form to tell dynare that the steady state calculated in the first stage (with fixed bonds equal to 0) is the steady state to which it has to look at to make the first order approximation? I have several ways, (using the save_params_and_steady_state in the first stage and the loading the file in the second stage, or using the recomendations in this topic viewtopic.php?f=1&t=1834&p=5055&hilit=steadystate.m#p5055 or in the manual) but none of them seems to work.

Any advice would be appreciated.
Many thanks,

Sergio

[jpfeifer]

Could you post or send a mod-file showing the issue?