(basic) Iacoviello 2015, converging problem

Hello everybody,

We are now planning to pelicate the basic model of Iacoviello 2015.

Unfortunately our code does not work, neither the code provided by Iacoviello himself.

We always have a converging problem.
Error using steady_ (line 27)
STEADY: convergence problems

As we are totally beginners with dynare, there might be some dumb mistakes.
Note: we took the same initial values as in our replication of a simpler Version of Iacoviello’s 2005 paper, which worked.

We are grateful forany help!
Project3m.mod (1.41 KB)

Are you talking about the paper
"Financial Business Cycle" ?

The usual advice applies. Try computing the steady state analytically. Or try starting with a simple version that works.

Thank youfor your time, when I ran the code of Financial Business Cycle,I encounter the following words.Idon‘t know why. Can you explain it tome?
fbc1_rbc.mod (10.5 KB)

Error using print_info (line 57)
Impossible to find the steady state. Either the model doesn’t have a steady state, there are an infinity of steady states, or the guess values are too far from the solution

Could it be that you are missing their steady_state-file?