steady state for non-linear equations

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steady state for non-linear equations

Postby dragonfly » Fri Aug 10, 2012 8:29 am

In order to calculate third order effects (as deviations from the model steady state) I first need to calculate the steady states of the model. I know the steady states can be calculated in Dynare, however I do not how to do it for this model. Here is the full model, where lam=lambda and lk=lambda K.

lam =(((c^b)+(k1*((S)^b)))^(w/b)-1)*(k1)*((S)^(1/x-1/v))*k3*((Oh)^(-1/x));
lam =(beta*lam(+1))*((1-di)+(c(+1)^b)+(k1)*(S(+1))^(b))^(w/b-1)*k1*(S(+1))^(1/x)-(1/v)*D^(-1/x);
lk= beta*(lam(+1)/lam)*(r(+1)+ lk(+1)*(1-dk)-(phi/2)*((Ik(+1)/K)-dk)^2 + phi*(Ik(+1)/K-dk)*Ik(+1)/K);
S = D(-1)^(x-1/x)+ k3 *(Oh^(x-1/x))^(x/x-1);
L = lam*N;
Id = D-(1-di)*D(-1);
Ik= K -(1-dk)*K(-1)+ (phi/2)*(Ik/K(-1)-dk^2)*K(-1);
S = (D(-1)^x-1/x+ k3*Oh^(x-1/x))^x/x-1;
lk =(1/1-phi)*(Ik/K(-1)-dk);
N = (Y^(1/sigma)*(((L)^alpha)*K(-1)^(1-alpha))^(sigma-1)/sigma)*L(-1);
r = ((1-alpha)*(Y^(1/sigma)*((L)^alpha)*K(-1)^(1-alpha))^sigma-1/sigma)*K(-1);
1/Of^(-1/sigma) =(Y^1/sigma)*a1/p;
Y = (Y^(1/sigma)*((L)^alpha*K(-1)^(1-alpha))^((sigma-1)/(sigma))+a1*(Of)^(sigma-1)/sigma)^(sigma/(sigma-1));
Y= c+Ik+Id+p*Oh+p*Of;

Does anybody know how these can be calculated in Dynare?

Thank you,
Best Regards
dragonfly
 
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