Dear Professors,
I am struggling in choosing the best possible way to solve a large model which is too complex to reduce to a simple model. It involves multiple non-linear functions to solve. I understand I can put them in the mod file and use the steady options to do it. However, first, it is difficult to have a good initial guess so that the steady states can be solved. Secondly, I have some steady-state values of a few variables (such as those in the policies) in the mod file which needs the solutions from the steady states files. It seems impossible to set these values in the mod file. It will be great if anyone can show me the best way to do it.
Typically, you would reduce the problem to a couple of nonlinear steady state equations you can solve numerically inside of a steady state file and provide an analytical steady state.
Hi professor,
I am trying to do it now. But the helper function in example3 is only for one variable (labour). Can I use fsolver to solve multiple variables within the steady-state file? Is there any example file for this?
Hi apple564,
have a look at Solve system of nonlinear equations - MATLAB fsolve
There you will find an example for two equations.
Generally, fsolve will help you find n unknowns to satisfy n equations.