Can't find steady state


#1

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!
Clara

??? 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_);


#2

Is your model log-linearized?

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

Regards,

Fernando


#3

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


#4

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.


#5

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.
clara


#6

Identify the problematic equations by putting

resid;

before steady. Then check these equations.

For example, your Taylor rule shows a problematic residual:

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

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;

The steadystate file did not compute the steady-state