Numerical methods in steady_state.m file

Steady state
1

Dear all,

Is it safe to use fsolve or any other numerical methods in dynare’s “steady_state.m” file?

Thanks.

2

Hi amina0621,

Yes, it is. Just to mention one, fzero may be an option too, depending on your needs.
You can also feel free to invoke functions of your own device as well as all other Matlab utilities you may find useful to find the steady-state.

See an example of a simple steady-state file where fzero is used
NK_baseline_steadystate.m (3.8 KB)

And an example of a far less straightforward steady-state file where several user-defined functions are appended to the script and invoked in the code
US_CMR14_rep_steadystate.m (23.9 KB)

3

Thanks Camilo, great to know!

4

I should add that Dynare will check whether the results you provide satisfy the equations of the model. So there is not much scope for mistakes.

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