Dynare forums

Dear All,

I'm trying to find the steady state of a model. I have computed the steady state by hand and used a .m file to compute it separatly; however, Dynare doesn't seem to be able to compute it.

Please find attached my .m file and my .mod file. I can't see where i went wrong.

Please help


Thanks and Regards

When using an external steady state file, you cannot have a steady_state_model block.

There are two ways of computing the steady state of a model. The first way is to let Dynare compute the steady state using a nonlinear Newton-type solver; this should work for most models, and it is simple to use. The second way is to give more guidance to Dynare, using the knowledge of the model, by providing it with a steady state file. You can use the command
steady ;
steady (OPTIONS…);
This command computes the steady state of a model using a nonlinear Newton-type solver and displays it. When a steady state file is used steady displays the steady state and checks that it is a solution of the static model.