Dear Prof Pfeifer,
I have tried to incorporate the DMP framework to asset pricing model. Solving for the steady state is not possible analytically, hence i wrote a steady state.m file.
I have attached both the m file and mod file. Fsolve does not seem to solve my highly non linear equation to get theta_t. Please could you explain how to give the initial value under fsolve for the attached m file?
Looking forward to your reply.
Version4_28Feb_steadystate.m (3.42 KB)
What do you mean? You are already providing an initial value. In
Hello Prof Pfeifer,
Sorry if my question was not clear.
I tried giving some random initial values in the above code to see if I would be able to solve for a steady state value for theta_t.
However, I was unable to solve for theta_t. So I am asking if there is a methodology where I can give an initial value instead of log(2) to help me solve the equation?
What you can always do is check for the
and add an if-clause that tries to solve the equation with a different starting value whenever the exitflag>0 (which should be the error codes.)