Hi everybody.

I’m working on a non-linear DSGE model. I solved steady state of the model analytically with pen and paper but my answers are a little bit different with Dynare steady state answers. Then I wrote the non-linear equations in Matlab itself and used fsolve command to compute steady states. The results are consistent with my pen and pencil answers. I checked all my equations in Dynare several times and they are Ok.

Additionally, Dynare solution is dependent of the policy interest rate but fsolve and my pen and pencil answers are independent of that.

[maybe this is important: one of the variables in steady state is the answer of the quadratic form equation.]

How different are you results? Can it be numerical precision? If the difference is too large, the equations entered in Dynare must be different from the one in Matlab.

Thanks a lot.

Problem solved. There was a problem in one of the Dynare code equations.

Best