Setting parameter value to match steady state target

Stochastic simulations
1

Hi all!

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!

E.

2

That is the right way to go. See e.g. DSGE_mod/RBC_baseline/RBC_baseline.mod at master · JohannesPfeifer/DSGE_mod · GitHub
The warning that you get should be one that says

If these parameters are not initialized in a steadystate file or a steady_state_model-block
But obviously you are setting it there.

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