I’m trying to replicate the RBC model with monopolistic competition that is anaalyzed in the User Guide – Public Beta Version (chapter 3.2) (I’m using Dynare version 3.065).
I have noted that if we change the method that is used for compute the steady state (command: steady(solve_algo = …)), the simulation leads to a two different result.
In particular, when we use **steady(solve_algo=0), steady(solve_algo=1) or steady(solve_algo=2), **the steady state results:
whereas if we use **steady(solve_algo=3), **the steady state results:
Moreover, as you can see from the figures, also the Impulse Response Functions (IRFs) are differents.
My questions are: Am I miss something? Where is the error in my simulation? Which is the right solution?
Thank you very much.
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