yj.mod (2.6 KB)

Hello,

I am working on a Iacoviello-type DSGE model with fixed-rate loans,

and I keep receiving the error message saying that it is impossible to find the steady state.

Can anybody give me a piece of advice?

Thanks.

Warning: Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND = 1.744234e-27.

In trust_region>dogleg (line 202)

In trust_region (line 112)

In dynare_solve (line 185)

In evaluate_steady_state (line 223)

In steady_ (line 55)

In steady (line 81)

In yj (line 342)

In dynare (line 235)

Residuals of the static equations:

Equation number 1 : -0.013242

Equation number 2 : 0.58711

Equation number 3 : -0.025877

Equation number 4 : -1.0355

Equation number 5 : 0.040951

Equation number 6 : 2.0228

Equation number 7 : -0.004217

Equation number 8 : -0.056312

Equation number 9 : 0.97798

Equation number 10 : -0.1

Equation number 11 : 0

Equation number 12 : 0

Equation number 13 : 0.065044

Equation number 14 : 0.13009

Equation number 15 : -0.8

Equation number 16 : 0.020874

Equation number 17 : 0.025876

Equation number 18 : -0.0048349

Equation number 19 : 0.006919

Equation number 20 : -0.015296

Equation number 21 : 0

Equation number 22 : -1

Equation number 23 : -0.052171

Equation number 24 : -0.087578

Equation number 25 : 0

Error using print_info (line 83)

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

Error in steady (line 104)

print_info(info,options_.noprint, options_);

Error in yj (line 342)

steady;

Error in dynare (line 235)

evalin(‘base’,fname) ;