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?
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.

print_info(info,options_.noprint, options_);

Error in no400.driver (line 488)

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)

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.

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

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.

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’]) ;

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