Hi:
I am replicating a paper but i have trouble with steady state values.firstly,I use fsolve to get steady state values in Matlab,then log-linearizing around the steady state，and use dynare to solve model.
How to deal with the following problems ?
1) fsolve can't converge to a solution x.(exitflag=0 not 1), the the squared 2-norm of the residual is 10e-5 ,if i can't use the "approximate steady state value".
2) how to limit the range of values ,eg. i want to get a positive value,but fsolve return a negative value.
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use fsolve to find steady state values
by jack_ct » Sat Jul 02, 2016 7:49 am
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Re: use fsolve to find steady state values
by jpfeifer » Sat Jul 02, 2016 5:27 pm
I am not sure I understand the problem, but this suggests that you haven't found the correct steady state of the underlying model in Matlab. Is there a reason you log-linearize by hand instead of using the nonlinear model in Dynare?
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