Can't find steady state

Dear Dynare users,

when i run file.mod i have a problem in computing the steady state. Do you have any suggestion to resolve the problem please?

Thank you a lot!

??? Error using ==> print_info at 74
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 at 92
print_info(info,options_.noprint, options_);

Is your model log-linearized?

If you paste more details on your debugging, it might be helpful.



Hi Fernando,
My model is not log-linearized. i just calculate steady state and put initial value for endogenous variables.

Focus on the equations were Dynare shows big residuals. For example in equation 4 when you do the exp-substitution, the brackets seem to be wrong. You might want to consider solving the linear model first and then going to loglinearization later using exp(), once everything else works.

Dear Professor Pfeifer,

I rewritten the model without (exp) and have corrected errors in the equations with a large residue but I still get the same error message. Is there something else I should do? Thank you for your help. New codes are in attachement.

Identify the problematic equations by putting


before steady. Then check these equations.

For example, your Taylor rule shows a problematic residual:


Basically, the constant seems to be missing. I think it should be along the lines of

R=rhor*R(-1)+(1-rhor)*(R_bar + phipi*pi+phiy*(y-y(-1)))+er;