Hi Michel,

I have a question to pose.

I am writing a Dynare code to study the transition from one steady state to another. As some calibrated parameters depend on the particular steady state I am considering, these coefficients should change appropriately. How can I manage to do that? I thought of declaring these parameters as variables and write an apposite equations which support the steady state

Dear Tiziano,

in general it is the steady state that depends on the parameters and a permanent change in the value of some parameters triggers a move to a different steady state.

So I’m not too sure to understand the problem that you are facing. Can’t you express the parameters that you are seeing as depending on the steady state as, instead, dependant on the deep parameters?

Are all the parameters getting a new value at the same time (at the beginning of period 1 of the simulation)?

Kind regards

Michel