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?