I am quite new to Dynare and would appreciate your help.
I am solving a New Keynesian model with Taylor pricing of automatic price reset at the 3rd period. So the steady-state optimal reset price would depend on 2 lagged optimal resets.
In other words I’d like:
But of course, Dynare is giving me the error “symbol p_star cannot take arguments.”
What would be a way around it to have lagged variable in steady state (and also in the model block, but that is not giving me problem yet)
Thank you very much for your help.