Put
before steady to see
[quote]Residuals of the static equations:
Equation number 1 : 27880249954411.24
Equation number 2 : 0.40032
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : -2.8557
Equation number 6 : 0.42472
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : -2.7543
Equation number 11 : 0
Equation number 12 : -0.066184
Equation number 13 : 0
Equation number 14 : -2.2681
Equation number 15 : 0
Equation number 16 : 0
Equation number 17 : 0[/quote]
Given the extremely large residual in equation 1, I guess there is still a mistake in that equation. Moreover, your initial value of Ct is negative.
From what I can see, also my last post of [Jaimovich and Rebelo: News About the Future) applies to your specification of
x=X*exp(eps1) ; % Aid
log(eps1)=psi11*log(eps1(-1)) + psi12*log(eps2(-1))+psi13*log(eps3(-1))+e1; %Aid shock