Let’s say that I am going to estimate my model and my steady state values are calculated like this
further assume that I have a Taylor rule in my model block that reacts on output deviations from its steady state according to
This means that I want to include my steady state value for y in my model block and I also want it to be updated as my parameters change during the estimation and as was evident from the steady state ekvations above my steady state value for y_ss depends on a lot of expression equations.
Then the problem is. What do I write under the “steady_state_model;” block? Because I can’t use the same expression names like THETA_ss and it seems a bit messy to have to define new expression variables just for the steady state block such as “THETA_ss2”. So does anyone have a clever way how to include all of this such that all steady state equations are updated during the estimation in a way that I can include “y_ss” directly in the model?