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)