Dear All,

I am new in Dynare and I have two (perhaps silly) questions:

1/ Equations counting :

Let

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.

For example

in “myfile.mod”

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.

Charles