!!

Steady-state versions of equations

Syntax

dynamicEquation !! steadyEquation;

Description

For each transition or measurement equation, you can provide a separate steady-state version of it. The steady-state version is used when you run the functions steady and checkSteady, the latter unless you change the option EquationSwitch=. This is useful when you can substantially simplify some parts of the full dynamic equations, split the model into sequential blocks, and help therefore the numerical solver to achieve faster and possibly laso more accurate results.

Examples

log(a) = 0.8*log(a{-1}) + (1-0.8)*2 + epsilon_a !! log(a) = 2;

The following steady state version of an Euler equation will be valid only in stationary models where we can safely remove lags and leads.

lambda = lambda{1}*(1+r)*beta !! r = 1/beta - 1;