Derivation of Steady State

Steady state
1

This is a really awkward question to do. I wrote a paper three years ago and simulated it using dynare. The code worked perfectly but now I am trying to change certain things about the model and I can’t rederive the steady state. Specifically the derivation of P^N in steady state is driving me crazy.

I attached a brief description of the model and the steady state.
Any help will be more than welcomed!

Thank you
SteadyState.pdf (26.9 KB)
TNT_Models.pdf (178.4 KB)

1 Like
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Dear @camaracmb

Are you having problem deriving the steady state (i.e. obtaining the analytical relationships) or computing it (i.e. numerically, with Dynare) ?

My impression is that you are in the latter case, since your first PDF seems to contain the analytical steady state, but please confirm.

Please post the code you’re working on, and the precise description of the problem you’re encountering.

3

Hi Sebastian!

I had problem obtaining an analytical relationship for the steady state.
But I finally got it! Once I finish with the estimation procedure I will upload the whole code

Thank you very much!