Steady state and model value inconsistency

[poris]

Hi

I have a problem in solving the residuals of the model equations.
Here is my equation, calvo pricing, for example,

p_x^(1-v)=d*(p_x(-1)*pistar)^(1-v)+(1-d)*(p_xt^(1-v));

exist residual.

But the value of both right and left side are the same when in the part of given initial values.
I test in the .m file to verify it.

.................
t1= p_x^(1-v)
t2=d*(p_x(-1)*pistar)^(1-v)+(1-d)*(p_xt^(1-v))

t2 is equal to t1!!
How could this happen? I'm sure i didn't redefine the variable's value.
Is there any mistake will cause this kind of inconsistency?

[jpfeifer]

What exactly are you doing? Are you talking about the residuals after running

Code: Select all

steady;

If yes, then the problem comes from a different equation. As Dynare tries to solve a simultaneous equation system, the values provided in initval are only the starting values. Different values are tried later during steady state finding. To see the residuals of the equations given your initial values, use resid(1) before steady, i.e.

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initval;
...
end;
resid(1);
steady;