Behavior of STEADY_STATE() in perfect foresight models with anticipated permanent shocks.
In the current state,
STEADY_STATE(X) return the terminal steady state of variable X in the dynamic model (
oo_.steady_state(i)). Is this correct in the periods preceding the permanent shock? What if we have more than one permanent shock (at different periods)? @FerhatMihoubi raised this issue yesterday in a discussion. There is a mechanism in the bytecode routines to handle this case by considering different steady state between each (expected) permanent shock (actually this part of the code is not working). For me it is far from obvious that the steady state should change (unless the permanent shocks are unexpected, but there is noisy interface for this kind of scenario in Dynare).