This is the so-called MX model seen in the book of Schmitt-Grohe and Uribe of International Macro. It is a SOE model with 2 sectors (Mportables and Xportables). I have set up the equilibrium conditions just as described in the text. What is missing is the steady state. As a shortcut solution, I try the “initval” command, but it is not reaching a solution. I need help either solving the steady state analytically or tips on finding proper initial values.
Thanks,tot.mod (4.1 KB)