Question on steady-state

Dynare help (legacy posts)
1

Hello all,

I an new to Dynare and I would like to ask about the steady-state. I have found the steady-state equations and used them for calibration. After that, I plug in the parameter values in order to find for instance the long-run c/y ratio and compare them to data averages. They seem to be in line with averages, but when I put as intial values my long-run solution in Dynare, the steady-state results are different.

Is that sensible?

Hope to made my question clear and thanks in advance.

Ilias

2

When you put the initial values in dynare, dynare re-calculates the steady-state based on those values. Obviously, if your calculation is correct the results should not be very different. Is that the case?

3

Yes kyri82. Thanks!!