# Parameter dependence and # operator **URL:** \ **Category:** ML/Bayesian estimation\ **Created:** [21 August 2015 16:51 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936 "2015-08-21T16:51:11Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![econ86](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/d9b06d/32.png) [@econ86](https://forum.dynare.org/u/econ86)\ **Post date:** [21 August 2015 16:51 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/1 "2015-08-21T16:51:11Z")
Dear all, When estimating DSGE model, I’m taking into account parameter dependence. My question is: where are the calculated SS relations that make use of # operator stored after the estimation? Best, ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [21 August 2015 18:17 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/2 "2015-08-21T18:17:00Z")
They are not stored at all. If you want them to be stored, you need to define them as parameters and use a steady\_state\_model block to make sure they are correctly updated in every draw. ---
**Author:** ![econ86](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/d9b06d/32.png) [@econ86](https://forum.dynare.org/u/econ86)\ **Post date:** [22 August 2015 06:41 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/3 "2015-08-22T06:41:49Z")
Dear J. Pfeifer, If I understand you correctly, this is the same as using # operator with the only difference being that in this case the calculated SS relations are stored. Am I right? Best. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [22 August 2015 09:08 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/4 "2015-08-22T09:08:15Z")
Yes. The #operator is basically a placeholder where the preprocessor, whenever such an expression is encoutered, is replaced by the right-hand side of the definition. Thus, the model-local do not exist anymore when the model is run as they are simply replaced by the expression involving the original parameters. In contrast, the steady\_state\_model block allows storing such expressions. The reason is that you are defining a separate parameter that is stored, but because the steady state file is executed every time the model is solved the parameters are correctly updated when you specify the dependencies correctly. ---
**Author:** ![econ86](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/d9b06d/32.png) [@econ86](https://forum.dynare.org/u/econ86)\ **Post date:** [22 August 2015 12:00 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/5 "2015-08-22T12:00:49Z")
Ok, but I still have a problem. Now I have the following: **var** mu\_zhat epsilon Upsilon z\_tildestar zeta\_c … **varexo** epsilon\_muz epsilon\_epsilon epsilon\_Upsilon … **parameters** beta alpha eta\_c sigma\_a sigma\_L … (b\_w and y\_bar are not declared here) beta=0.995; //b\_w = (lambda\_w_sigma\_L-(1-lambda\_w))/((1-beta_xi\_w)_(1-xi\_w)); // Wage equation parameter //y\_bar =(1/lambda\_d)_((mu\_z)^(-alpha))\*((k\_H)^(alpha))\*H; // SS output etc. **model(linear);** … #b\_w = (lambda\_w_sigma\_L-(1-lambda\_w))/((1-beta_xi\_w)_(1-xi\_w)); // Wage equation parameter #y\_bar =(1/lambda\_d)_((mu\_z)^(-alpha))\*((k\_H)^(alpha))\*H; // SS output etc. When using the steady\_state\_model I would have: **var** mu\_zhat epsilon Upsilon z\_tildestar zeta\_c … **varexo** epsilon\_muz epsilon\_epsilon epsilon\_Upsilon … **parameters** beta alpha eta\_c sigma\_a sigma\_L … b\_w and y\_bar beta=0.995; //b\_w = (lambda\_w_sigma\_L-(1-lambda\_w))/((1-beta_xi\_w)_(1-xi\_w)); // Wage equation parameter //y\_bar =(1/lambda\_d)_((mu\_z)^(-alpha))\*((k\_H)^(alpha))\*H; // SS output etc. \*\*model(linear); \*\*… end; \*\*steady\_state\_model; \*\*b\_w = (lambda\_w_sigma\_L-(1-lambda\_w))/((1-beta_xi\_w)_(1-xi\_w)); // Wage equation parameter y\_bar =(1/lambda\_d)_((mu\_z)^(-alpha))\*((k\_H)^(alpha))\*H; // SS output end; etc. I’m not sure whether this is correct. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [22 August 2015 13:04 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/6 "2015-08-22T13:04:05Z")
Looks good to me. ---
**Author:** ![econ86](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/d9b06d/32.png) [@econ86](https://forum.dynare.org/u/econ86)\ **Post date:** [23 August 2015 10:12 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/7 "2015-08-23T10:12:55Z")
I placed all the parameters and SS relations that are dependent on the estimated parameters under the steady\_state\_model block as described in my previous post, but when running the estimation, I encounter the following problem: Error using print\_info (line 72) The steadystate file did not compute the steady state Error in print\_info (line 72) error(‘The steadystate file did not compute the steady state’) Error in initial\_estimation\_checks (line 69) print\_info(info, DynareOptions.noprint, DynareOptions) Error in dynare\_estimation\_1 (line 179) oo\_ = initial\_estimation\_checks(objective\_function,xparam1,dataset\_,M\_,estim\_params\_,options\_,bayestopt\_,oo\_); Error in dynare\_estimation (line 89) dynare\_estimation\_1(var\_list,dname); Error in model1 (line 1058) dynare\_estimation(var\_list\_); Error in dynare (line 180) evalin(‘base’,fname) ; ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [23 August 2015 16:06 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/8 "2015-08-23T16:06:42Z")
When your model is linear, this is impossible. Please provide the files. ---
**Author:** ![econ86](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/d9b06d/32.png) [@econ86](https://forum.dynare.org/u/econ86)\ **Post date:** [23 August 2015 17:35 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/9 "2015-08-23T17:35:20Z")
Yes, I use the well-known model of Adolfson et al. which is also included in the Macroeconomic Model Data Base (name EA\_SR07). It is log-linearized, variables are expressed as percentage deviations from SS (hat variables). So, with that model the best way is to use the pound operator # in front of the parameters and SS relations that are dependent on the estimated parameters? ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [23 August 2015 17:47 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/10 "2015-08-23T17:47:21Z")
I need the files to replicate the issue. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [30 August 2015 15:21 UTC](https://forum.dynare.org/t/parameter-dependence-and-operator/4936/11 "2015-08-30T15:21:08Z")
This has to do with the fact that you have a linear model with variables that contain constant terms. You need to provide analytical solutions for these variables when you use a steady\_state\_model block. You could use the initval-block values from my other response to your model: [[Steady state values in log-linearized model: Problem](https://forum.dynare.org/t/steady-state-values-in-log-linearized-model-problem/4947/3))