I am new to Dynare and trying to replicate the model of Prasad and Zhang, 2015 “Distributional effects of monetary policy in emerging markets” for my master’s thesis. I could not find the SS analytically (Appendix 1) without making some assumptions (productivity, A_H and A_N=1, S (terms of trade) = 1 and all relative prices = 1 at the SS) but the code is still not working. I do not know if the code is wrong or if it comes from my assumptions. Are there other ways to solve for the SS?
Thanks! I did focus on those equations but still did not know how to solve them, I think my problems come from the foreign bond.
Actually, it should be R_star_bar and I put the one I found analytically (and made a mistake forgetting betaa) not knowing how to call for the SS result. Is it possible to ask dynare to use a value he will find? Did not find anything like that (Not sure my question is really clear).
Yes, I did, it seems to work now. I was also trying to solve R_star, which is actually exogenous, and I used 1/betaa as initial value, in case someone wonders.
Hello, Nastasia, I’m was trying to replicate the code for peruvian economy in a university course. I had the same problems and still can’t run the code correctly. Today I find this forus so I was wondering if you could help me. Thank in advance.