Dynare forums

Hello Everyone,

Merry x-mas and happy new year. I have a simple doubt.
I would like to set, in steady state, the ratio of two variables to a certain value.
Let's say, capital/consumption = 0.35.
I do not know how to do it, any suggestions?

Thank you very much in advance,

Fernando gB

It depends on the model and the parameter you want to fix. In a closed economy model, fixing the capital consumption ratio is equal to fixing (Y-I)/K, where I/K is the depreciation rate. Y/K can be computed from the discount rate. In Dynare, you would use expressions or a steady state file. See the discussion in https://sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf?attredirects=0 and the NK_baseline.mod in the examples folder of Dynare 4.4

Thank you Johannes, I was just mentioning that ratio as an example,
I want to fix the same leverage ratio for two similar models. I got an idea for doing
it from your example and discussion, thanks again.
best,

.