I am replicating a model which contains 36 equations. To get the steady state, I used the command:
steady (solve_algo =1). I insert some arbitrary initial values for the variables. The mod file works.
So, is it sufficient to use the above command without solving the steady state myself?
Really appreciate your advice.
If the model works, then you found a steady state. As you can hardly be sure that it is the only steady state, you need to check whether the values make sense. Apart from that, you are good to go.
replicate_Lin_2018.mod (10.1 KB)
Many thanks Prof. Johannes Pfeifer for your reply and for information.
I am trying to replicate Lin 2018 as attached. I have some variables has negative values in the steady state, could you please give me your advice on that?
Also, I solved only some variables in the steady state, but I need to solve the rest to train myself on that.
I only can solve steady state by hand. I wonder if there is a way in dynare, Matlab , or other package can help me getting the steady state equations.
Your help is really appreciated.
It’s hard to judge. Most of your variables are in logs. So negative values are not unusual (if the level is below 1, the log will be negative)
What do you mean with
Thanks Prof. Pfeifer
Is there any external software can I use to get the steady states?
Why would there be one? Dynare itself can compute steady states numerically as it does in your case. In the end, you are always solving a nonlinear equation system.