I am trying to simulate a DSGE model that includes a labour augmenting-deterministic growth. After detrending all variables, i used Dynare to compute the solution. However, Dynare is not able to compute steady sate values for my model. I guess so that the problem might be due to complex numbers. My question: Does dynare gnerate or accept no real values for the steady-state?
To see my problem more, you find two files attached.
Thanks a lot
MSSF_steadystate.m (3.76 KB)
MSSF.mod (12.1 KB)
When using a steady state file, you are providing the steady state numbers and Dynare only checks whether they are consistent with the entered model equations. In your case, they are not. Some of the computations you have at the beginning of your mod-file (which actually should be inside of the steady_state file to make sure parameter dependencies are always correctly handled) result in complex numbers. In my years in economics, I have never encountered a case where complex parameters or variables made economic sense. For that reason, Dynare does not accept complex values when solving models.
Summary: your computations are most probably wrong as they result in complex numbers.
First, i am sorry for my delayed response. I have found my mistake. I have not correctly computed some model equations.
Thanks a lot!!