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Finding Steady state of New Keynesian Model

PostPosted: Thu Aug 04, 2011 1:05 am
by Anh Nguyen
I am having a problem with the steady state as follows, can anyone help me?

var x infl i;

varexo uis uas ui;

parameters alf bet lam rho pi1 pi2;
bet=0.99;
rho=-ln(bet);

model;
x = x(+1)-alf*(i-infl(+1)-rho)+uis;
infl = bet*infl(+1)+lam*x+uas;
i = rho +(1-rho)*(pi1*infl+pi2*x)+ui;
end;

varobs x infl i;

initval;
x=0;
infl=0;
i=rho;
end;
steady;
check;


estimated_params;
alf, normal_pdf, 1, 0.5;
lam, beta_pdf, 0.5, 0.18, 0,1;
pi1, gamma_pdf, 1.5, 0.25;
pi2, gamma_pdf, 0.5, 0.1;
stderr uis, inv_gamma_pdf, 2, inf;
stderr uas, inv_gamma_pdf, 2, inf;
stderr ui, inv_gamma_pdf, 2, inf;
end;

estimation (datafile=Vietnam,mh_replic=100000,prefilter=1, conf_sig=0.90) x infl i;


The error as follows:
Warning: Some of the parameters have no value (alf, lam, pi1, pi2) when using steady. If these parameters are not
initialized in a steadystate file, Dynare may not be able to solve the model...

> In test_for_deep_parameters_calibration at 46
In steady at 33
In vietnam at 101
In dynare at 132
STEADY: numerical initial values incompatible with the following equations
1 2 3


Thank you very much

Re: Finding Steady state of New Keynesian Model

PostPosted: Thu Aug 04, 2011 4:16 pm
by olayenidynare
The message means that you have not calibrated the listed parameters. You must calibrate all the parameters in the parameters block whether or not you're still going to estimate them.

Also note that you could also use
#rho=-ln(bet);
in the model block instead of calibrating it the way you did.

Hope this helps.

Re: Finding Steady state of New Keynesian Model

PostPosted: Fri Aug 05, 2011 11:41 am
by Anh Nguyen
Thank you very much. It finally works.
Best,

Re: Finding Steady state of New Keynesian Model

PostPosted: Mon Apr 27, 2015 3:51 pm
by kunal
Can any one please post a steady state file for New Keynesian model

Re: Finding Steady state of New Keynesian Model

PostPosted: Tue Apr 28, 2015 5:10 am
by jpfeifer
There is one in the examples folder of Dynare.