I’m trying to replicate the paper of Santiago Caicedo Soler (2012) Countercyclical banking capital bueers in a DSGE model. Every time I run the model I get the following error message:
Error using print_info (line 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 (line 92)
Error in countercyclical_replication (line 396)
Error in dynare (line 180)
I know this is a very common problem for dynare rookies but I cannot find where my error is.
In this paper, I can’t find the equation for wage is missing, so I set it with constant value. However, it didn’t work. Please find it help me?
Moreover, I don’t know whether I program correctly or not.
Any additional help would be much appreciated.
Countercyclical banking capital buffers in a DSGE model - 2012.pdf (608 KB)
countercyclical_replication.mod (5.67 KB)