steady

steady — computes the steady state of a model

Synopsis

steady [(OPTION [, OPTION...])];

Options

solve_algo = INTEGER

Determines the non-linear solver to use. Possible values for the option are:

  • 0: uses Matlab® Optimization Toolbox FSOLVE

  • 1: uses Dynare's own nonlinear equation solver

  • 2: splits the model into recursive blocks and solves each block in turn

  • 3: Chris Sims' solver

  • 4: similar to value 2, except that it deals differently with nearly singular Jacobian

Default value is 2.

homotopy_mode = INTEGER

...

homotopy_steps = INTEGER

...

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.

If you know how to compute the steady state for your model, you can provide a Matlab® function doing the computation instead of using steady. The function should be called with the name of the .mod file followed by _steadystate. See fs2000a_steadystate.m in examples/fs2000 directory.

Output variables

The steady state is available in oo_.steady_state. Endogenous variables are ordered in order of declaration used in var command as in M_.endo_names.

Examples

See initval and endval.