# Conditional steady state

**URL:** <https://forum.dynare.org/t/conditional-steady-state/27424>\
**Category:** Optimal Policy\
**Created:** [11 April 2025 09:22 UTC](https://forum.dynare.org/t/conditional-steady-state/27424 "2025-04-11T09:22:14Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Random.t](https://forum.dynare.org/letter_avatar_proxy/v4/letter/r/eada6e/32.png) [@Random.t](https://forum.dynare.org/u/Random.t)\
**Post date:** [11 April 2025 09:22 UTC](https://forum.dynare.org/t/conditional-steady-state/27424/1 "2025-04-11T09:22:14Z")

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Hi everybody,

I am struggling with the notion of “conditional steady state” needed in the ramsey policy set up.

What a steady state conditional on the value of the instrument would differ on wrt a usual steady state?  
I cannot grasp the underlying intuition and as a consequence I am not able to implement it in my e-dsge with financial frictions everytime I change the policy instument (I am not able to change the steady state consequently).  
Here you find attacched my code where I am failing to find out the optimal tax on brown assets of a bank.  
[ramsey\_prud.mod](https://forum.dynare.org/uploads/short-url/oABhm47yRWaFHd3j2QiM4Z8Pkcg.mod) (8.9 KB)  
[ramsey\_prud\_steadystate.m](https://forum.dynare.org/uploads/short-url/7ZmnP1dxG0ciKGFtCl1qgzNLWhj.m) (2.9 KB)  
[findssramsey\_prud.m](https://forum.dynare.org/uploads/short-url/59HwocSu9yPZnghJp8YFH7cI4rE.m) (1.8 KB)

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [11 April 2025 11:42 UTC](https://forum.dynare.org/t/conditional-steady-state/27424/2 "2025-04-11T11:42:07Z")

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Have a look at

> **[examples/Ramsey\_steady\_file\_steadystate.m · master · Dynare / dynare · GitLab](https://git.dynare.org/Dynare/dynare/-/blob/master/examples/Ramsey_steady_file_steadystate.m?ref_type=heads)**
>
> A platform for handling a wide class of economic models

I reads in the value of the instrument and then computes the steady state values for whatever the value of the instrument is.