Dynare forums

Dr Dr Pfeifer

I am new user of Dynare. How can you tell your model that you assume zero steady state for your observed variables??

Many thanks

You cannot

tell your model that you assume zero steady state for your observed variables

A steady state is a vector of variables that solve the entered model equations. What you can do is provide Dynare with initial values for finding the steady state (initval-block) or even the analytical steady state (steady_state_model-block). By default, if no values are provided, Dynare assumes a starting value of 0. If this is already the steady state consistent with the model equations, then you are done.