I am trying to estimate a model with deterministic growth, coming from technology (Y=K^alp*(A*H)^(1-alp), with A being the technlogical component.
I am basing my programming on the fs2000ns file and its documentation in the dynare user guide.
I stationnarized my model exactly as recommended, by dividing everything that grows by A and relegating the non-stationarity to the observable variables. In this sense, everything works fine.
My problem is this:
In the fs2000ns program, the steady-state for the stationary part was found analytically and coded in the fs2000ns_steadystate.mod file. The steady-state of the non-stationary variables is specified as =1, which according to the documentation is a programming convention.
In my case, with the model being significantly bigger, the analytical steady-state is not really possible to derive. Also, we plan to make the model grow pretty soon so having to derive the steady-state by hand every time is not really an option.
I made an experiment where I ask Dynare, in a simulation environment, to find numericaly the steady-state of the stationnary part of the model, and Dynare was succesful without any problem.
So, my question is:
Is there any way to code the steady-state of my model using, in part, numerical methods for the stationary part while at the same time specifying that the observable variables are non-stationary?
This would really be helpful to us.
I know that my question is pretty long, so if you need me to be more precise, don’t hesitate to ask.
Thanks for your help!
Sébastien Mc Mahon