I’ve already log-linearised ,but i don’t know how to deal with it in dynare.I don’t know if ican sovle them by hand,i tried,but i failed.i describe the problem in the attachment,Could you please have a look at it for me ?
I really really appreciate your help!
Looking forward for your reply.
Yale
my problem.pdf (132 KB)
If you enter your model in linear form, you have to compute the steady state by hand. You could try to enter the equations nonlinearly, but even then usually very good starting values are required. And yes, solving for a steady state is hard and involves solving for many variables.
hello,jpfeifer,
thank you so much for your help!!
could you please tell me how to choose a good initial value? For instance ,how to choose the output Y,since it’s changing all the time?
Yale