Dear all，
I recently try to finish a small-open-economy NK model with a financial accelerator in the downstream sector. However, the steady state calculated manually does not match the result shown by Dynare. To be specific, one of these problems lie in the retailer sector whose setting follows Calvo(1983). The steady state of price dispersion is calculated to be one while Dynare gives me totally different results.
Could anyone help me with this? The .mod files are attached below.
Best wishes.
exchange_rate_steadystate.m (1.2 KB)
calibration.m (2.2 KB)
test.mod (5.7 KB)