Numerical computation of the steady state

Hello,

I am working on a two country model for which I can compute the steady state with paper and pencil for a specific (and quite restrictive) parametrisation, and I can simulate it perfectly. However, I would now like to allow for heterogeneity of parameters across countries. In this case, I can no longer calculate the steady state analytically.
I was wondering whether there is a way to write a Matlab function that searches for the steady state numerically, given the steady state values of part of the model (which I still manage to calculate by hand).

Any help (and specifically any example) on this is greatly appreciated, thanks!!!

Mary

Hi,

I sometimes use the matlab function “fsolve” to calculate the steady-state myself. Have you tried that? You can have part of the ss solved with fsolve and part by hand as you mention.

K

Please take a look at the steady_state file delivered with the NK_baseline.mod in Dynare 4.4. Here, a solver is called.