How can I solve a model with indeterminacy?
I am not sure if dynare can handle it. But I think it’s possible we start from one steady state, and end in another steady state. It’ s especially common in open economy model. If dynare cannot do it, what are the other possible solutions? Thanks!
I think you are confusing indeterminacy of the model solution in the Blanchard-Kahn sense with having a unit root in the model. The latter is easily handled by Dynare (e.g. via the diffuse_filter in estimation). The former is curently not supported. See github.com/DynareTeam/dynare/issues/111