Parameter dependence and steady state

Estimation
1

Dear all,

As far as I understand there are two ways to take into account parameter dependence in Bayesian estimation of the model (https://archives.dynare.org/phpBB3/viewtopic.php%3Fp=21053.html):

  1. Include the parameters which depend on estimated parameters in the model block with # operator;
  2. Include the parameters which depend on estimated parameters in the steady_state_model block (also declare them as parameters at the beginning of the mod file).

However, when I adopted the second approach, I found out that I get a warning stating: ‘Some of the parameters have no value when using steady’. The warning is for all the parameters which depend on estimated parameters, which are in the steady_state_model block. What could be the reason?

Best,
Nurdaulet

2

I sorted it out. Thank you!

3

If you read the full error message, you will see that it mentions explicitly that you can ignore the warning if there is a steady state file setting those parameters.