Estimating parameters that change steady state and other parameters

[jpfeifer]

You can either do that in a steady_state_model-block if you have closed-form expressions, see

Setting parameter value to match steady state target

That is the right way to go. See e.g. https://github.com/JohannesPfeifer/DSGE_mod/blob/master/RBC_baseline/RBC_baseline.mod The warning that you get should be one that says If these parameters are not initialized in a steadystate file or a steady_state_model-block But obviously you are setting it there.

The alternative is a user-written steady state file that can also solve numerical equations to achieve calibration targets. See

Problem with finding steady state

I am not sure I can follow. Why don’t you write a steady state file that sets the parameter values to satisfy a calibration target? An example would be https://github.com/JohannesPfeifer/DSGE_mod/blob/master/Jermann_Quadrini_2012/Jermann_Quadrini_2012_RBC/Jermann_Quadrini_2012_RBC_steadystate.m