steady state: solution of multi-nonlinear-equation system

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steady state: solution of multi-nonlinear-equation system

Postby mindint » Fri Jan 23, 2015 5:29 pm

In the steady_state_model block, we can only write something like
x=f(parameters).
But my steady state is a solution of a multi-nonlinear-equation system, e.g.
f1(x1,x2)=0;
f2(x1,x2)=0;
I cannot explicitly solve either x1 nor x2, therefore must solve the implicit function system simultaneously for numerical solution. How can I do this in dynare? If need external m files, how can I incorporate that into the dynare so that when the parameters change, it will adapt accordingly and that I can also do the estimation?
Thanks!
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Re: steady state: solution of multi-nonlinear-equation syste

Postby jpfeifer » Sat Jan 24, 2015 8:55 am

You could take a look at example3.mod in the Dynare examples folder. It shows how to use an auxiliary file to call a solver.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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