Hello everyone!

I am trying to incorporate a matlab function in Dynare, but it doesn’t seem to like it. I have a linearized model, in which some coefficients depend on steady state values. Therefore, I solved for the steady state by hand and I wrote a matlab function (called ssvalues) which, given values for the model parameters, gives the steady state values as outputs. I tried to incorporate this function in my .mod file after the the “parameters” block, when I specify values of parameters. In particular, I coded:

beta = 0.998;

[y_ss, c_ss, otherssvalues_ss] = ssvalues(beta);

When I try to run the .mod file I get the following error message:

STEADY: numerical initial values incompatible with the following equations

Columns 1 through 14

```
1 2 3 4 5 6 7 8 9 10 11 12 13 14
```

Columns 15 through 28

```
15 16 17 18 19 20 21 22 23 25 27 28 29 31
```

Columns 29 through 31

```
32 33 34
```

??? Error using ==> dynare_solve at 94

exiting …

Error in ==> steady_ at 120

[oo_.steady_state,check] = dynare_solve([M_.fname ‘_static’],…

Error in ==> steady at 54

steady_;

Error in ==> basesimple at 386

steady;

Error in ==> dynare at 120

evalin(‘base’,fname) ;

Apparently, Dynare does not use the outputs of my function as parameters of the model. Can anyone tell me why this happens and how can I do tho fix this problem?

Thank you very much!

Best,

Mary