Adding SWF and convergence

General DSGE Modeling
1

Hello,

So I am trying to code for a sovereign wealth fund and whenever I add it to my code, I keep getting:

*SOLVE: maxit has been reached
Error using steady_ (line 77)
STEADY: convergence problems

Error in steady (line 52)
steady_;

Error in newbaseline (line 553)
steady;

Error in dynare (line 102)
evalin(‘base’,fname) ;
*

I know this has something to do with the timing of the model but I wanted to find out if there is any way around it given that my sovereign wealth fund will naturally have two states (F(-1) and F).

2

This not about the timing, because in the steady state, you are considering a static model. Are you sure your steady state is uniquely determined?

3

Thank you, I managed to solve this problem!