Hi everyone
In my model, i am solving the steady state, in which I have the following equation
log(z(t)) = log(z) + epsilon(t) (1)
z is steady state point.
When I solve the equation (1) at the steady state, then all z(t) = z and shock (epsilon(t)) will disappear. So equation (1) at the steady state is always log(z) = log(z)
how I can determined the steady state z? and write it into the steady state file.
I mean other case like technology shock
log(a(t)) = rhoalog(a(t-1)) + epsilona(t) (2)
at the stead state, the equation (2) becomes: log(a) = rhoalog(a), then I can determine a = 1 as the steady state. But what about the equation (1), how to determine the steady state?
Best regards