I am new in Dynare and I have two (perhaps silly) questions:
1/ Equations counting :
Eq1: P=f(Qs) the supply equation
Eq2: Q=f(Qd) the demand equation
Eq3: Qd = Qs the equilibrium equation
How do I account for these 3 equations in my main Dynare file “myfile.mod” and my Matlab file that computes the SS “myfile_steadystate.m”
I guess Eq1 and Eq2. In Dynare file “myfile.mod” and Eq1 (or Eq2) and Eq3. in the Matlab file “myfile_steadystate.m”
2/SS condition and Dynare “Steady.m”
Since “Steady.m” computes the SS by solving the model where no time leads and lags are accounted for, how does one add a NSS condition.
Current_Account (t)= TB(t) + Interest(t)
In “myfile_steadystate.m” I hypothesize that TB = 0 which implies
Current_Account = Interest
My question is, when Dynare’s “steady.m” computes the SS by solving the model without leads and lags, it solves
Current_Account = TB + Interest
How can I make sure that it takes into account that I add the condition TB = 0 when I solve for the SS myself in “myfile_steadystate.m” to provide values in initval block?
I would appreciate if someone could answer me.