Bayesian estimation: Log data density [Laplace approximation] is NaN

[jpfeifer]

1. If you only allow vpi=1, then that’s the steady state.
2. Clearly, with vpi=1 the terms you mention reduce to 0.
3. I don’t get the second point about expressions. You can assign parameter values in steady_state_model-blocks.
4. Linearization will not help. See

Loglinearized model

If your model is loglinear, all variables typically have a steady state of 0. Dynare always uses 0 as the initial value if not told otherwise. Hence, if you use model(linear); [loglinear model equations] end; steady; check; it should work. You don’t even need an initval-block in this case. The tricky part discussed in this post is if you do not know the coefficients in front of the loglinearized variables, e.g. you have loglinearized budget-constraint c_ss*c +i_ss*i=y_ss*y; where the c_ss, …