steady_state_model; block

[lah89]

I couldnt really find a lot on this in the user guide.

As far as I understood, the steady_state_model block is an optional item that can be added when you solved for the steadystate equations by hand. One does that to save computation-time (or does it provide more accuracy for the steady; command?).

Can it be used in both, stochastic and deterministic simulations ?
If I add a steady_state_model block, what else do I have to adjust in my .mod file ? Does the order of the model and the steady_state_model blocks matter ?

[jpfeifer]

See the manual. You can find an example and discussion of it in "A Guide to Specifying Observation Equations for the Estimation of DSGE Models" at https://sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf. See in particular "Remark 15 (initval vs. steady_state_model vs. steadystate-file)"

It is for both stochastic and determinstic contexts. It should be after the model-block and does not interact with other blocks except for initival (which only matters the context of deterministic models).

[lah89]

See the manual. You can find an example and discussion of it in "A Guide to Specifying Observation Equations for the Estimation of DSGE Models" at https://sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf. See in particular "Remark 15 (initval vs. steady_state_model vs. steadystate-file)"

It is for both stochastic and determinstic contexts. It should be after the model-block and does not interact with other blocks except for initival (which only matters the context of deterministic models).

perfect, this is what I was looking for!
So I guess solving for the SSvariables explicitly might help.
Appreciate it.