Hello,

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)

print_info(info,options_.noprint, options_);

Error in countercyclical_replication (line 396)

steady;

Error in dynare (line 180)

evalin(‘base’,fname) ;

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.

Thanks

Countercyclical banking capital buffers in a DSGE model - 2012.pdf (608 KB)

countercyclical_replication.mod (5.67 KB)