Do steady-state results of log-linearized model must be 0?

General DSGE Modeling
1

Dear all:

Do steady-state results of log-linearized model must be 0? I think yes, they must.
But when I run my log-linearized model, the results at steady state turn out to be some non-zero values. They are very small but they are not 0. I have checked my model for several times and still can not fix it.

Could anybody tell me what I should do to fix it？
Please help!
God blesses!

2

There can be mistakes somewhere.
Include model_diagnostics, model_info and resid commands to find out.

3

I use the command model_diagnostics,it reports that“
MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.”

And when I use the command resid(1), it reports Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : -0.2
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : 0
Equation number 16 : 0
Equation number 17 : 0
Equation number 18 : 0
Equation number 19 : 0
Equation number 20 : 0
Equation number 21 : 0
Equation number 22 : 0
Equation number 23 : 0
Equation number 24 : 0
Equation number 25 : 0

Question: the residue of Equation number 10 is not 0 but -0.2, so will the problem lies in Equation number 10 ? (But I check the equation and I think it is right.)…So ?

4

Thank you Saurabh! I know the problem is indeed with the EQ.10 . Thanks for your answer!!!

5

Hi, it means that the steady state of some of the variables are not consistent with equation 10. So you need to check all the variables appearing in this equation and the equation itself (if the equation is wrong, you will have a non zero residual even if the steady state is correct).

Best,
Stéphane.