RBC Baseline Model: steady-state derivations and implementation in Dynare (with preprocessing tips)
This video is part of a series of videos on the baseline Real Business Cycle model and its implementation in Dynare. We focus on computing the steady-state both analytically and numerically.
First, we derive the steady-state using pen and paper and then implement this using either an `initval` or `steady_state_model` block in Dynare. We also cover "helper functions" that introduce numerical optimization in an otherwise analytical `steady_state_model` block, in order to compute the steady-state for variables for which we cannot derive closed-form expressions by hand.
Slides, notes and codes: https://mutschler.eu/teaching/rbc-vid...
Course on Computational Macroeconomics: https://github.com/wmutschl/Computati...
*Timestamps*
Theory
01:44 - What is a steady-state?
02:54 - Derivation of steady-state expressions using pen and paper
10:21 - Summary of steady-state recipe
Dynare Implementation
11:06 - Getting ready
13:37 - Initval block
16:20 - steady command
19:06 - steady_state_model block if you have closed-form expressions for all variables (log utility case)
20:22 - steady-state computation error for CES utility
21:04 - steady_state_model block if you don't have closed-form expressions for all variables (CES utility case) using a helper function
Dynare Preprocessor
18:00 - Macro variable to switch between initval or steady_state_model blocks
23:18 - Name tags for model equations
24:58 - write_latex_steady_state_model
Outro & References
25:54 - Outro
27:02 - References
*Corrections*
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Checkout https://mutschler.eu/teaching for more stuff on DSGE models and Dynare.