DSGE - Migration

Steady state
1

Hi, I´m estimating a DSGE Migration model in Dynare, but I have problems finding the steady state because it has Nan or Inf. I attach the Non-linear and linear model. Thank you very much
DSGE.mod (8.7 KB)
DSGENoLinear.mod (8.2 KB)

2

For DSGENoLinear, you cannot use steady_state(Y), because that steady state refers to the one in the linearized model, while you are trying to address the nonlinear one. Also, some equations still contain constants, e.g.

    w_sven = p_ven + (theta_ven -1/theta_ven)*epsilona_ven + (1/theta_ven)*Y_ven + (theta_ven - eta_ven/theta_ven*eta_ven)*Upsilon2_ven - (1/eta_ven)*l_sven;

should not have the p_ven in there.

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