Writing the steady state file

Steady state
1

Hi everyone

In my model, i am solving the steady state, in which I have the following equation

log(z(t)) = log(z) + epsilon(t) (1)
z is steady state point.

When I solve the equation (1) at the steady state, then all z(t) = z and shock (epsilon(t)) will disappear. So equation (1) at the steady state is always log(z) = log(z)
how I can determined the steady state z? and write it into the steady state file.
I mean other case like technology shock
log(a(t)) = rhoalog(a(t-1)) + epsilona(t) (2)
at the stead state, the equation (2) becomes: log(a) = rhoalog(a), then I can determine a = 1 as the steady state. But what about the equation (1), how to determine the steady state?

Best regards

3

Hi Peter,
Please use the possibility to write \LaTeX equations and expressions, it would be easier to read.

From what I understand, the steady state has to be given as a parameter. It is exactly the same in your second example, which can be written more generally as:

\log a_t = (1-\rho)\log a^{\star} + \rho \log a_{t-1} + \varepsilon_t

The deterministic steady state for a would be a^{\star}, and you have implicitly chosen a^{\star}=1.

Best,
Stéphane.