RBC model: steady-state derivations and implementation in Dynare (with preprocessing tips)

How to compute the steady-state of the RBC model both analytically and numerically, 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.

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Timestamps

Theory

Dynare Implementation

Dynare Preprocessor

Outro & References

Slides and notes

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rbc_steady_state_helper.m

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rbc_nonlinear.mod

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