Dear Dynare users,
I solve a multi-country DSGE model in dynare to obtain the ifrs. I write the model in linear form therefore the model is expressed in percentage deviations, so I also set zero initial values. (I write the command initval; and then all the variables take zero initial value).
After I write the initval; command I DO NOT write the steady; command as I want the model to start from the zero steady-state that I have chosen !
However, when I obtain the ifrs, it seems that the model starts from a different steady-state (it is close to zero, but not zero, some variables have a steady-state like 0.25 etc).
This is crucial because I want to compare the model ifrs with those of ramsey/discretionary policy which when I use then the model starts (normally) from the zero steady-state !!!
Thank you in advance,