Cannot find steady state after adding housing

Steady state
1

Hello everyone!
I am trying to adding housing into a two country model, but my model cannot find steady state.
Could somebody provide me some suggestions and ideas to solve this question?
Thanks for any advice!
Necessary informations are as follows:

//The report from dynare is as follows:

Error using print_info (line 32)
The steady state has NaNs or Inf.

Error in steady (line 102)
print_info(info,options_.noprint, options_);

Error in no400.driver (line 488)
steady;

Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;

//Here is my code:
no400.mod (7.3 KB)
Those code with the signal “【】” are changed by me. The rest of the code are orginal.

//Here is the orginal code
no30.mod (4.6 KB)

//Here is the orginal paper
3.Tae-Seok, Eiji, 2013, Productivity shocks and monetary policy in a two-country model, Dynare working papers.pdf (348.3 KB)

2
  1. Your parametrer definitions use gamma before you define it.
  2. The two equations
%【1/ sum up of firm's housing and family's housing】
l_e = 1-l_h;
l_e_star = 1-l_h_star;

are not properly linearized.

3

I get the correct result!
Thank you very much! This problem bothered me all day, Best wishes to you, professor jpfeifer!

4

Could you please show me the correct way of log-linearing the equation L_h(t)+L_e(t)=1 ?
I try to use Uhlig’s way to finish the linearizing process but I failed.

6

My log-linearizing result is l_h = -l_e
And the dynare report that BK condition unsatisified, as follows:

Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: indeterminacy.

Error stoch_simul (line 107)
print_info(info, options_.noprint, options_);

Error no400.driver (line 497)
[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_);

Error dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;

7

If you are loglinearizing, it should be
I_h_ss*l_h = -I_e_ss*l_e