Hello, I have an issue with the model I am trying to estimate. I defined my variables in logs as I wanted to get IRFs as percentage deviations. However, Dynare says it is impossible to find the steady state. If instead, I redefine variables to be in levels, the code runs fine. I can’t figure out …

IRFs/steady state question

jpfeifer July 23, 2022, 6:39am 2

See

Don’t do a full exp()-substitution. Append auxiliary variables. See Question about understanding irfs in dynare

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