Dear all, If I want to simulate parameters that are based on the value of other estimated parameters, and their relationship is not simply linear, e.g, two simulated parameters and another two estimated parameters have formed a four-variable quadratic equation system, how should I do that?
The existing examples I have met are using “#”，to express the simulated parameters as functions of the estimated parameters. But their relation are simply linear, and have a one to one close form expression. So that gives me no help.
Thanks.
In that case, use a steady state file to solve the simultaenous system of equations. For a univariate example on how to call a solver there, see the NK_baseline_steadystate.m in the Dynare examples folder
Thanks a lot , it really helps