`steady' after initval does not set values to steady state

Dynare v4 (legacy)
1

Hello,

In the attached mod-file, the steady-command after the initval does not seem to set the values of the endogenous variables equal to their steady state values. Instead, the simulation starts with the values of initval, this can be seen by examining the results.

The mod-file is a small variation of the RBC_Monop_Det.mod file that comes with the user manual. I try to start and end in the same steady state. I use the same values for initval and endval. The steady-command does work for the end of the simulation where the variables are in their steady state.

In Dynare 3, the same mod-file produces different results. In that case, the results start and end in the steady state, as one would expect.

At the end of the steady.m file it reads
%%% Unless I’m wrong, this is (should be?) done in make_y_.m
and then more code is commented out. My guess is that this code should be included.

Bert
RBC_Monop_Det_test.mod (732 Bytes)

2

Dear Bert,

Thanks for pointing out this bug… I forgot to commit my (corrected) version of steady.m on our subversion repository. It’s done now. If you use svn you can get the new version, otherwise the snapshot version will be updated tomorrow morning.

Best,
Stéphane.

3

I thought I ran into the same issue as the op, but it is my fault that I didn’t value some of the parameters used in the mod file. Anyway, I attach my code here, which tries to replicate Justiano, Primeceri and Tambotti (2008), but it turns out there is one dimensional indeterminacy in the current version. I really appreciate if you can give me some advice and I will keep updating my work.
JP2008.mod (5.05 KB)