I am new in dynare I would like to ask some questions regarding calculation steady state values.
I am trying to replicate a one paper from Pierre Agenor called “optimal fiscal policy under commodity fiscal policy”. the log-linearized and steady state equations are used to solve this model.
There are 39 non-linear steady state equations. To use steady state values so as to solve log-linearized equations (such as IIss=IGIGss+IPss*IP is loglinearized equation and Iss is coming from steady state solutions), I am using fsolve.
Firstly, would like to ask Can I introduce multiplicative constants for some of 39 steady state equations to solve these 39 nonlinear equations?
For example, I have DGss=(PRss^(1/pr))Yss equation for goverment debt and Fss=(chiTOss)/phiF for sovereign fund. Can I introduce DGss=0,1Yss and Fss=0,02Yss multiplicative constants instead of previous two equations .
Secondly, will it be wrong to use real data which I will have from data source such imf instead of using steady state values which I obtain from solving 39 nonlinear steady state equations by using fsolve .
If you help me I will be very happy
Thanks in advance