Can't find the steady state (residual 0.0003771)

Steady state
1

The mod file is about fiscal policy in the pandemic. I can’t find the steady state because equation 5 has residual 0.0003771, all other equations have 0 residual. I think I’ve manually calculated the correct steady state in the “steady state calculation” section and claimed in the initial value block, but I don’t know why the mod file still doesn’t work (so must be some mistakes here). I have uploaded the mod file. Can someone help me.

nt.mod (8.1 KB)

2

I did not take look into your file, but I have managed to solve a similar problem by changing the tolerance of the steady state computation, triggered by the resid() command. Use the following command after shock declaration:

options_.dynatol.f = 0.001;

Hope this helps.

3

Thank you, will try tomorrow.

4

@Tavinho Don’t do that here. Simply use

steady(maxit=1000);
1 Like
5

Problem solved, in case anyone who has similar problem, steady state calculation (line 65) in the original file is wrong