Hi, I try to simulate a DSGE model, but It is difficult to find the steady state of the model. Can I get help to find it?
The file is
Untitled.mod (2.3 KB)
Check all your equations. For example,
(P_Xe)/(P_Me) = ro_s*(P_Xe(-1))/(P_Me(-1))+e_s;
requires
(P_Xe)/(P_Me)=0
which cannot be.
Dear jpfeifer,
Thanks for your comment. If I understand your comment, there is missing equation in the model or which directions can I check my equations?
The equation I pointed you to is clearly wrong. I don’t know what the correct version is, but you should. Along these lines, check all your equations whether they are correct.