is there a specific literature to steady state in DSGE?

[cjcostaj]

Good day,

I am studying ways to find the steady state in DSGE models, but I'm having difficulty finding the indicated literature. Could you help me?

best,

Celso Costa

[ptr]

There are two ways to finding steady state either;

1) you compute it by hand, or
2) use the command
steady;
check;

[jpfeifer]

Unfortunately, there is no literature on this that I am aware of. The thing is that after dropping all time subscripts, you simply have to solve a system of nonlinear equations. There are some tricks you get to know with some practice, but I am not sure anyone has ever really written them down.

[cjcostaj]

Thank you.
I have a procedure to find the SS. But I whould like to know if there is a theory about it.

Best regards,

Celso

[jpfeifer]

What do you mean with "Theory"? You are solving a nonlinear equation system. Depending on how the equations look like, theory might tell you whether there exists a unique steady state. For example, in the Solow model, the theory tells us there are two steady states: the regular one and the trivial one at 0.

[cjcostaj]

I think something like your example (Solow). I will be to think about it.

Thank you.