Steady state with and without "steady"

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,

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

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

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,

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

Perfect, now everyhting makes sense.

Thank you