Block Decomposition of Model

Dynare help (legacy posts)
1

Hi,

I am working on a medium sized small open economy DSGE model with nominal rigidities and running into some difficulty in matching the steady states obtained as a part of the Dynare solution with what I have by solving for the steady state of the model outside Dynare. I was wondering if using Block decomposition might help solve this problem as Dynare is able to match the steady-state value for some of the variables and failing to match for a smaller subset. It would be great if you could please share some guidelines along how to use this approach and maybe share an example of the model declaration under Block Decomposition.

Thank you.

2

I don’t understand your problem. If the steady state you compute manually and the one in Dynare do not match, either your computations are wrong or the model implementation. In that case, nothing else than checking the model and the computations will help.