# \-2.46691e-11 for a variable in the steady state(initval =0))

**URL:** <https://forum.dynare.org/t/2-46691e-11-for-a-variable-in-the-steady-state-initval-0/19822>\
**Category:** Stochastic simulations\
**Created:** [17 February 2022 15:48 UTC](https://forum.dynare.org/t/2-46691e-11-for-a-variable-in-the-steady-state-initval-0/19822 "2022-02-17T15:48:35Z")\
**Posts on this page:** 2\
**Page:** 1

<div class="post-metadata">

**Author:** ![michaelm](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/3be4f8/32.png) [@michaelm](https://forum.dynare.org/u/michaelm)\
**Post date:** [17 February 2022 15:48 UTC](https://forum.dynare.org/t/2-46691e-11-for-a-variable-in-the-steady-state-initval-0/19822/1 "2022-02-17T15:48:35Z")

</div>

Hi.  
I have defined a negative productivity shock in my model.  
[exogenous.mod](https://forum.dynare.org/uploads/short-url/q8ISrYxFakIlCjsQrlSGY7aqgEA.mod) (3.5 KB)  
The result of this shock is correct for all variables. But the negative productivity shock has had a positive effect on _Bank’s Profit_ and _this variable_ have increased. While it should have had a negative effect on _this variable_ . I do not know the reason for this positive effect.

Could this be the reason?:

_Bank’s Profit (in the steady state)_ (pi\_b)=0 in the initval block

Because the bank optimizes and based on this optimization, different variables are selected so that the _Bank’s Profit_ is zero in the steady state.

But the steady state of _this variable_ in dynare results is obtained as follows:

-2.46691e-11

Thank you in advance for your help

![image](https://forum.dynare.org/uploads/default/original/2X/6/639dd53fa850e83492031c4907ad269d8aa6a39f.png)

---

<div class="post-metadata">

**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [17 February 2022 17:55 UTC](https://forum.dynare.org/t/2-46691e-11-for-a-variable-in-the-steady-state-initval-0/19822/2 "2022-02-17T17:55:56Z")

</div>

`pi_b` is 0 for all practical purposes. That is most probably not the issue. Have you checked the individual components of the profit equation? A lot of the variables are predetermined, so the reaction of inflation will be crucial.