Model Solving without Caliberation

Stochastic simulations
1

How to solve the model without a steady state and calibration? Kindly help!

model;
c (+1)/c= BETA * (1+ r (+1) - DELTA (+1));

1-l = (c/w) * b;

r = ALPHA * (y/k);

w = (1-ALPHA) * (y/l);

c = y - iv;

y = (k (+1) - (1-DELTA) * k)/c;

y = k^ALPHA * l^(1-ALPHA);

end;

2

This is a standard RBC model. If you properly initialize initval and the parameters, the model should run.

3

Yes the model did run with initializing initval and the parameter. But if you would please help me to know, can the model will provide any output if run without initializing initval and the parameter?

4

output say equation for each variables (c, l, r…).

5

That is not a well-defined question.

6

var
c l k w r iv y
;

parameters

ALPHA
BETA
DELTA
b
;

model;
c (+1)/c= BETA * (1+ r (+1) - DELTA (+1));

b = w * (1-l)/c ;

r = ALPHA * (y/k);

w = (1-ALPHA) * (y/l);

c = y - iv;

iv = (k (+1) - (1-DELTA) * k);

y = k^ALPHA * l^(1-ALPHA);

end;

7

You still did not tell us what you are trying to achieve.

8

Here we want to solve the model. How can we do it in dynare? Please guide.

9

Please guide.

10

But you did not specify a complete model yet.