Bond market in NK_DSGE and Steady State

Dynare help (legacy posts)
1

Hello

I am trying to run this model but it is giving error, problem with Steady State, the data set of bond yield (B) is attached.

Regards

Ali
Bonds.xls (34.5 KB)
BondDSGE.mod (8.08 KB)

2

Put

resid(1); steady;
before estimated_params. You will see that your starting values for computing the steady state for some variables are wrong/too far away.

3

Thank you very much indeed for reply, you are right this is the message it is giving, could you please advise me which values I should assign.

Regards and best wishes

Ali

4

jpfeifer could you please help me as well.

5

As always in those cases, either try finding the steady state with pen and paper and provide exact starting values, or use a trial and error approach to minimize residuals.