steady

steady — copmutes the steady state of a model

Synopsis

steady [ (solve_algo = 0 | 1 | 2 ) ] ;

Options

  • solve_algo = 0: uses Matlab Optimization Toolbox FSOLVE (default if Optimization Toolbox version >= 6.5 is available)

  • solve_algo = 1: uses Dynare's own nonlinear equation solver (default otherwise)

  • solve_algo = 2: splits the model into recursive blocks and solves each block in turn. Maybe useful for large models with bad guess values for the steady state (Thanks to Manfred Gilli for showing me Matlab's function DMPERM).

Description

Computes the equilibrium value of the endogenous variables for the value of the exogenous variables specified in the previous initval or endval block.

steady uses an iterative procedure and takes as initial guess the value of the endogenous variables set in the previous initval or endval block.

For complicated models, finding good numerical initial values for the endogenous variables is the trickiest part of finding the equilibrium of that model. Often, it is better to start with a smaller model and add new variables one by one.

Output variables

The steeady state is available in ys_. Endogenous variables are ordered alphabeticaly as in lgy_.

Examples

See initval and endval.