I couldnt really find a lot on this in the user guide.
As far as I understood, the steady_state_model block is an optional item that can be added when you solved for the steadystate equations by hand. One does that to save computation-time (or does it provide more accuracy for the steady; command?).
Can it be used in both, stochastic and deterministic simulations ?
If I add a steady_state_model block, what else do I have to adjust in my .mod file ? Does the order of the model and the steady_state_model blocks matter ?
See the manual. You can find an example and discussion of it in “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” at sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf. See in particular “Remark 15 (initval vs. steady_state_model vs. steadystate-file)”
It is for both stochastic and determinstic contexts. It should be after the model-block and does not interact with other blocks except for initival (which only matters the context of deterministic models).
[quote=“jpfeifer”]See the manual. You can find an example and discussion of it in “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” at sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf. See in particular “Remark 15 (initval vs. steady_state_model vs. steadystate-file)”
It is for both stochastic and determinstic contexts. It should be after the model-block and does not interact with other blocks except for initival (which only matters the context of deterministic models).[/quote]
perfect, this is what I was looking for!
So I guess solving for the SSvariables explicitly might help.
Appreciate it.