Greetings Dynare Experts,
I am solving a model for steady state analytically. I am able to write two equations in terms of two variables C and Y (after couple substitutions ) and then use fsolve to solve for the two variables in two unkowns. After that I willl be able to determine all other variables.
My concern that when I used fsolve to get C and Y I have not used their relevant closing condition equations….Shouldn’t I substitute first closing conditions equations and wage clearing conditions in all equations before I solve for the two variables and substitute them in the rest ?
Thank you for your help