Steady state description
Posted: Fri May 15, 2015 5:57 pm
I'm a master student and I'm having some problems in introducing my model in Dynare. Since i will use the log linearized version of the model computed by Ulhig method I need a steady state version of all the equations. In some of them I need to introduce some variables that are not defined by the model ( AR1 process). So the question is for instance: how to transform a AR1 process into a SS equation? in order to be able to use this variable into others equations. Particularly my model define LP ( private labour) but not LG ( public labour) so i though that the solution is to assume a AR1 process to LG
Thank you
Thank you