Dear all,
My goal is to estimate a model.
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Why is _steadystate.m so important when the goal is to estimate the model? What is the disadvantage of just using initval; block in .mod file? I found that using the ss-file (attached) yields much slower estimation but good-looking posteriors, while using the initval; block yields faster computation but posteriors look degenerate, more like singletons.
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what does the check = 0; in _steadystate.m mean and why does it appear both at the beginning and the end of the ss-file? When I switched check=1; in the top of the file, dynare gave an error even though residuals from resid(1) were all zero. No error was given when check=1; was set at the bottom of the file.
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I have a Gelain(2010) model which seems to be linearized (attached); dynare finds ss-values to be zero. Given that information, may I just put ss-values equal to zero in the _steadystate.m file (as attached), or should I derive them?
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Is it possible to use _steadystate.m file to give initial ss-values and let dynare solve for ss-values?
ea_ge10est2_steadystate.m (4.92 KB)
ea_ge10est2.mod (18.8 KB)