steady state: solution of multi-nonlinear-equation system
Posted: Fri Jan 23, 2015 5:29 pmIn 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!
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!