A general question:
can dynare deal with models, which have no steady state?
Many greetings,
Daniel
Dynare forums
Forums for asking questions, posting comments and uploading examples related to Dynare
No Steady State
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
3 posts
• Page 1 of 1
Re: No Steady State
by jpfeifer » Tue Oct 08, 2013 8:13 am
What do you mean with no steady state? For stochastic simulations, Dynare linearizes around the non-stochastic steady state (which may be non-unique). If it does not exist, it won't work.
- jpfeifer
- Posts: 6940
- Joined: Sun Feb 21, 2010 4:02 pm
- Location: Cologne, Germany
Re: No Steady State
by Daniel Bendel » Tue Oct 08, 2013 8:39 am
I mean, I have a model with a government and a central bank. The government optimizes a utility function but with a different discont rate then the household, thus I get a equilibrium condition that in the steady state demands that both discont rates have to be the same, which they can't due to the assumption of a myopic government. Thus I wondered that the system has no steady state. Perhaps I am wrong, since I also think, that it could be that this system has no steady state since the government accumulates to much debt due to myopia.
Do you understand what I mean? I hope...
Do you understand what I mean? I hope...
Germany, Cologne
- Daniel Bendel
- Posts: 134
- Joined: Tue Nov 15, 2011 1:06 pm
- Location: Cologne, Germany
3 posts
• Page 1 of 1
Who is online
Users browsing this forum: No registered users and 7 guests