Comparison of Steady state computed by Dynare with Steady state computed by user

1

Hi
I first computed the Steady state in Maple and then entered the results in the initval block. Then dynare recomputed the Steady State. My question is whether the variables that are positive (negative) in the initval block should also be positive (negative) in the Dynare results? . For me, some variables have the opposite sign:
positive (negative) in the initval block, but negative (positive) in the Dynare results.

2

The signs (and values) must match in the initval and in the Dynare results, if those initvals are indeed a solution of the ss system. Since if you provide a solution as initial guess to Dynare, it will solve the system at the initial point. But if the value changes, from initial to results, it means Dynare was not able to solve the model in the given initial point.

What that suggest is that your initial values are not actually a solution. Then, in short no, you can have positive initvals and get negative results of viceversa (obviously only if the variable admits negative values).

Another thing is that, if you are also actually able to get a solution from Dynare with your initivals, it means those initvals are very close to the actual solution.

3

Thank you for your reply.
I have compared these values in the Table I attach.STEADY.pdf (222.1 KB)

dynare gave me the IRFs. But the IRFs that dynare offered are not interesting. variables do not return to the equilibrium and there are only two IRFs for the technology shock.
What’s wrong with my model? and what should I do?testamirali1.mod (3.8 KB)
thank you

4

Check all of your equations. For example

C=(b(-1)/1+pi)+m+(w*H);

seems to have wrong bracketing.