Hello everybody,

I attach below the .mod file relative to a model I am currently trying to estimate.

The model is provided to Dynare in its Non-linear version and, therefore, the solution of the steady state is required for the estimation (and simulation).

I set out the .mod file so as an external matlab function is called in the ‘‘Calibration block’’ (e.g right before ‘‘Model block’’): this function takes as

input the parameters of the model and returns steady state solution for each variable (I attach it below).

Finally, using the ‘Initval’ block, I set the SS values for each variables found above.

As far as model simulation is involved this codes works fine.

Now, my question is: does this arrangement work for the estimation as well or do I necessarily need to rely on a ‘Steady_State_Model’ block?

Thanks for your time,

Mattia

steady_state_solver.m (1.32 KB)

Test.mod (23.6 KB)