How to simulate a cross section of firms

Stochastic simulations
21

seems like the following works:

[name='1-period dividend strip price']
vd1 = exp(m)*d(+1);
[name='2-period dividend strip price']
vd2 = exp(m)*vd1(+1);
[name='3-period dividend strip price']
vd3 = exp(m)*vd2(+1);
22

what does residuals of the static equations represent? I have two non-zero residuals…

Screenshot 2024-09-10 at 10.33.42
Screenshot 2024-09-10 at 10.33.421098×592 61.6 KB

23
  1. Leads and lags of endogenous are only supported in Dynare 7 (the current unstable version). But your recursive version should work.
  2. Those are the residuals of the static equations given your initial values for the steady states. Most likely you did provide incorrect values for the steady states of the newly added variables.
24
  1. I see. The recursive version does work.
  2. Ok, so residuals related to initial values only.
    Thanks a lot.