A persisting error of The steady state has NaNs or Inf

Steady state
1

Hello Prof. I am new to Dynare and DSGE. I am attempting to replicate a paper by Fève, Moura and Pierrard for Indian economy. As written a in paper I am trying to run bayesian estimation of DSGE RBC Model. But I am getting persistent error of the steady state has NaNs or Inf. I am unable to figure out why this is so. Kindly help me out. I am attaching the relevant paper, my mod file and data file respectively.
Paper.pdf (2 MB)
DSGEM.mod (3.5 KB)
DSGE.csv (1.0 KB)

I am gettting following results:
Residuals of the static equations:

Equation number 1 : NaN : y
Equation number 2 : NaN : rk
Equation number 3 : NaN : w
Equation number 4 : NaN : pc
Equation number 5 : NaN : x
Equation number 6 : NaN : cc
Equation number 7 : NaN : 7
Equation number 8 : NaN : 8
Equation number 9 : NaN : 9
Equation number 10 : NaN : t
Equation number 11 : NaN : 11
Equation number 12 : NaN : 12
Equation number 13 : NaN : 13
Equation number 14 : NaN : z
Equation number 15 : 0 : g
Equation number 16 : NaN : 16
Equation number 17 : NaN : sh
Equation number 18 : NaN : le
Equation number 19 : NaN : sp
Equation number 20 : NaN : 20
Equation number 21 : NaN : eps_l
Equation number 22 : NaN : eps_a
Equation number 23 : NaN : 23
Equation number 24 : NaN : 24
Equation number 25 : NaN : 25

error: The steady state has NaNs or Inf.
error: called from
print_info at line 32 column 5
steady at line 102 column 5
driver at line 554 column 1
dynare at line 281 column 5

2

Hi Siddharth,

first of all, you should start with making your model run for stochastic simulation before you try to estimate it. Second, as Dynare tells you, you did not give numbers to all the parameters that you defined, which causes problems. Then, when sequentially calculating parameters that depend on each other you have to be able to one-by-one go through them and get numbers. This is a simple check if you have missed something.

In your case for example:
sp_bar = rk_bar - 0.025; The parameter rk_bar is defined two lines below.
y_bar = eps_z_bar*((k_bar)^(1-alph))*(h_bar)^alph; The parameter eps_z_bar is not defined at all.

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3

Thank you so much sir for your quick reply. I will do the suggested amendments and see if it works.

4

I have written a code for simulation. Mod file is attached here. I am getting an error saying invalid left hand side of assignment

1 +((theta1)(theta2)(-1-eta))/(1+(theta2)(n-eta(n+d-ab))) = o*(1+rd);
^
error: called from
dynare at line 281 column 5
Kindly guide me where am I going wrong?
SimulDSGE.mod (2.4 KB)

5

You are using a nonlinear model but do not declare a steady state. You are either supposed to add a steady state model or give initial values for your steady state to let Dynare solve it. If you do not add that Dynare assumes zero as an initial value for all endogenous variables when solving for the steady state, which often breaks stuff.

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