From 323bfaf353b1f511ba9a8c4cf8fe789a8503ce2c Mon Sep 17 00:00:00 2001 From: Johannes Pfeifer Date: Tue, 3 Dec 2013 15:02:09 +0100 Subject: [PATCH] Document treatment of parameters in steady state files --- doc/dynare.texi | 14 ++++++++++++++ 1 file changed, 14 insertions(+) diff --git a/doc/dynare.texi b/doc/dynare.texi index daeac47f9..a9a7b5db1 100644 --- a/doc/dynare.texi +++ b/doc/dynare.texi @@ -2859,6 +2859,20 @@ of a heavier programming burden and a lesser efficiency. @end itemize +Note that both files allow to update parameters in each call of +the function. This allows for example to calibrate a model to a labor +supply of 0.2 in steady state by setting the labor disutility parameter +to a corresponding value (see @file{NK_baseline_steadystate.m} in the +@file{examples} directory). They can also be used in estimation +where some parameter may be a function of an estimated parameter +and needs to be updated for every parameter draw. For example, one might + want to set the capital utilization cost parameter as a function +of the discount rate to ensure that capacity utilization is 1 in steady +state. Treating both parameters as independent or not updating one as +a function of the other would lead to wrong results. But this also means +that care is required. Do not accidentally overwrite your parameters +with new values as it will lead to wrong results. + @anchor{steady_state_model} @deffn Block steady_state_model ;