Hi! I’m trying to replicate Gertler, Sala and Trigari paper. The model is already linear in the paper. I can’t understand how to solve the problem to run codes correctly.

the message in dynare:

STEADY: numerical initial values or parameters incompatible with the following equations

2 7 13 17 19 21 22 23 24 26 29 38

Check whether your model in truly linear

Residuals of the static equations:

Equation number 1 : NaN

Equation number 2 : NaN

Equation number 3 : 0

Equation number 4 : NaN

Equation number 5 : 0

Equation number 6 : 0

Equation number 7 : NaN

Equation number 8 : NaN

Equation number 9 : NaN

Equation number 10 : NaN

Equation number 11 : NaN

Equation number 12 : NaN

Equation number 13 : NaN

Equation number 14 : 0

Equation number 15 : NaN

Equation number 16 : NaN

Equation number 17 : NaN

Equation number 18 : NaN

Equation number 19 : NaN

Equation number 20 : NaN

Equation number 21 : NaN

Equation number 22 : NaN

Equation number 23 : NaN

Equation number 24 : NaN

Equation number 25 : 0

Equation number 26 : NaN

Equation number 27 : 0

Equation number 28 : NaN

Equation number 29 : NaN

Equation number 30 : 0

Equation number 31 : NaN

Equation number 32 : 0

Equation number 33 : 0

Equation number 34 : 0

Equation number 35 : 0

Equation number 36 : 0

Equation number 37 : NaN

Equation number 38 : -Inf

??? Error using ==> print_info at 80

The steady state contains NaN or Inf

Error in ==> steady at 92

print_info(info,options_.noprint, options_);

Error in ==> trigari at 580

steady;

Error in ==> dynare at 180

evalin(‘base’,fname) ;

Thank you !

trigari.mod (4.89 KB)