Hello everyone!
I am running semi-structural model in Dynare 5.5, and I have encountered the following issue:
In those kind of growth equations (S = S(-1) + (dS)/4 ) the steady state value of dS is not 0 but rather a number different than zero (equal to dS_SS for example). That means that S has a deterministic trend.
I tried to solve this with the following way:
deterministic_trends;
S (dS_SS);
end;```
But I am getting the following error:
Unrecognized field name "endogenous_names".
Error in MPMOD_full_1.driver (line 528)
tmp1 = strmatch('S',M_.endogenous_names,'exact');
What are you trying to do? Have Dynare automatically detrend your model? Estimate a model where there is a deterministic trend in the observables? Or run a local linear trend model as in A nonstationary model for output gap with a const in drift ?