Commit b8e3ce0c authored by Stéphane Adjemian's avatar Stéphane Adjemian
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Merge pull request #550 from JohannesPfeifer/master

Document treatment of parameters in steady state files
parents 968b20d1 323bfaf3
......@@ -2857,6 +2857,20 @@ 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.
@deffn Block steady_state_model ;
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