Dear professor, sorry to disturb you. I build a DSGE model based on BGG model, now I want to analyze how the steady state of the model vary with the change of some parameter. I use calibrated leverage ratio and external financial premium to calculate the steady state. But intuitively, the changing parameter can affect leverage ratio and external financial premium. If I do not calibrate leverage ratio or external financial premium, it’s difficult to find the steady state. How to solve this problem? Thanks in advance!
If you want to study the sensitivity to the structural parameters, you need to alter the calibration strategy to make the leverage ratio and external financial premium objects that depend on these parameters. That will make solving for the steady state more complicated, but is necessary.