I’m writing a .mod file for a stochastic DSGE model and I need to calibrate one parameter to achieve a given target for some steady state variables (in particular, I want to let a preference parameter adjust to have the steady state of labour equal 1/3).
I am currently declaring the parameter and then writing its relationship with the steady state variables under the block “steady_state_model”.
Is this correct? Dynare produces impulse responses but I get a warning about that parameter not being initialized.
What is the best way to code this calibration?
Thank you very much for helping me on this!