Writing a model-urgent help please


I am writing down a model into dynare but I have a question:

How to do it if I have the following equation: ln(rt/r)=rho_rln(rt-1/r)+rho_y(yt/y)+ert
where r an y are the steady state values.
If I write the equation in that way dynare won’t be able to distinguish that it is a steady state value, how could I write it then?

Thank you so much in advance.

Look at the STEADY_STATE operator.

dynare.org/manual/index_13.h … _005fSTATE

Alternatively, if you can compute the steady state values, define r and y as parameters.