Hi,

I am modelo.mod (5.9 KB) new using Dynare. I am trying to get the steady state and I would really appreciate if you could take a look at this code to help me.

The error message is:

An infinite element was encountered when trying to solve equation(s) 56

with respect to the variable(s): be.

The values of the endogenous variables when the problem was encountered were:

c_a 0.306

j_a 0.1256

b_a 0.352

k_a 1.44

x_a 0.4504

w_a 0.527

r_k 0.0099

c_b 0.374

j_b 0.5546

w_b 0.527

i 0.06299

pi 0.0504

e 1.22

ht 0.5

htt 1.111

hfi 0

h_oil 0.0013

pib 1

pin 1

lambda_ac 0

lambda_ak 0

lambda_bc 0

j 0.279

w 0.527

cl 0.68

pl 1

pe 1

ce 0.7942

c 0.68

xl 0.2035

xe 0.0364

x 0.2276

pi_l 0.0504

k 3.2

bien_l 1

x_e 1

kg 0.3775

gg 0.1575

cmp 0.01

cap_s 0.00012

h 0.5081

pe_ast 1

cap_z 1.03e-07

c_le 0.1619

be 0.178

r_e 0.7717

bgt 0.472

b 1.28

ba_t 0.0357

ba_pr 0.0052

ba_es 0.0023

ba_eso 0.01

p_oil 0.6517

y_oil 0.04041

tau 0.1289

r 0.0099

Error using lnsrch1 (line 72)

Some element of Newton direction isn’t finite. Jacobian maybe singular or there is a

problem with initial values

Error in solve1 (line 111)

[x, f, fvec, check] = lnsrch1(xold, fold, g, p, stpmax, func, j1, j2, tolx,

varargin{:});

Error in dynare_solve (line 249)

[x,info]=solver(func,x,j1(r(i):r(i+1)-1),j2(r(i):r(i+1)-1),jacobian_flag, …

Error in evaluate_steady_state (line 221)

[ys,check] = dynare_solve(@static_problem,…

Error in steady_ (line 55)

[steady_state,params,info] =

evaluate_steady_state(oo_.steady_state,M_,options_,oo_,~options_.steadystate.nocheck);

Error in steady (line 80)

[oo_.steady_state,M_.params,info] = steady_(M_,options_,oo_);

Error in modelo.driver (line 793)

steady;

Error in dynare (line 288)

evalin(‘base’,[fname ‘.driver’]) ;

Thanks!