A problem with the transition path

Dear All,

I currently use dynare to conduct my work on the transition path (permanent shock on steady state changes). However, when i finish my coding the dynare always comes out the identical steady state results in spite of the inputs with different values on “initval” and “endval”. I hope someone can give me any recommendation on this problem, that would be very helpful. The mod is enclosed.

GKK.mod (1.6 KB)


You need to initialize your variable phi as an exogenous variable:

var Lambda C R L Y K I mu nu Ne Rk x z;

varexo phi;

You try to set phi in the blocks, but then in the steady_state_model you hardcode its value. Define it as an exogenous variable as @andre suggested and compute the steady state conditional on it.

Thank you, andre and Johannes, it finally works.