Steady state with and without "steady"

Steady state
1

Dear all,

I have a doubt with the steady state in my model (I am attaching the parameters.m and the -mod file).

In this case, I am providing dynare with some initial values that were originated in a steady state that I calculated in another code. This steady state does not match perfectly equation by equation, that is why I am not wrtitting it in the “steady_state_model” section in Dyanre.

The thing is the following: when I run the model with the “steady” (line 277 in my code) option I get a certain steady state. Now, when I remove “steady”, I find a steady state that is similar to the one that I provided as initial values; dynare solves the model amyway.

My question is: when I don’t use “steady”, what is Dynare exactly doing?

Thank you very much,
Emilio

code_example.mod (9.1 KB)
parameters.mat (2.3 KB)

2

steady is only for displaying the steady state results. When you call stoch_simul is will compute the steady state in any case.

3

Than you very much for your responde Johannes.

The thing is that the steady state that Dynare obtains is different depending if I write “steady” or not:

(1) Case 1: I write “steady”, this is the steady state (from oo_.steady_state):

m_Y 0.047
m_M 0.057
m_R 0.124
H_Y -1.057
H_M 7.213
A_Y 3.697
A_M 13.981
A_R 2.899
S_Y 4.059
S_M 13.725
S_R 2.539
y_Y -0.417
y_M 0.533
Y 0.166
C 1.683
C_Y 0.124
C_M 1.200
C_R 0.360
r 0.112
Ebar 1.040
E 0.085
R 1.012
K 0.446
L 0.119

(2) Case 2: I don’t include “stead”, this is the steady state (from oo_.steady_state):

m_Y 0.047
m_M 0.057
m_R 0.124
H_Y 3.166
H_M 7.586
A_Y -0.269
A_M 1.952
A_R 1.015

|S_Y |-0.278|
|S_M |1.970|
|S_R |0.889|
|y_Y |0.140|
|y_M |0.561|
|Y |1.001|
|C |0.802|
|C_Y |0.136|
|C_M |0.540|
|C_R |0.126|
|r |0.112|
|Ebar |1.040|
|E |0.085|
|R |1.012|
|K |2.682|
|L |0.715|

As you can observe, for some variables, the steady state do not coincide.
Why is this?

Thank you,
Emilio

4

After stoch_simul, the relevant steady state is in oo_.dr.ys.

5

Perfect, now everyhting makes sense.

Thank you
Emilio