I am running this paper in dynare (code provided by the author) and quite not sure how to get the same steady state initvals for “log_c_hat_saver”, “log_c_hat_borr” and “log_mc”. I have tried substituting in and solving by using fsolve. However, the steady state values differ. Any help in terms of finding the steady state values for these 3 different variables will be helpful.dlgjpe.mod (35.5 KB)
Here, you can only ask the author. Are you saying that using different initial values leads to different steady state values that are found? Or simply that you cannot reproduce the initial values used?
Thank you for your reply. I cannot reproduce the initial values used for the 3 variables. I get different values and when I plug those numbers in, the code does not run.
I see. My guess is that the author used a different software to come up with the steady state.