DSGE MODEL: 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

Steady state
1

Hi, I was running a small DSGE model and i attached the code below. I checked the model, again and again, searched Dyanre for help. But still could not fix the issues.
The error that shows up on dynare is
“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”.
is there any way that I can fix this issue?.
Thanks. dynare_simulation.mod (2.5 KB)

2

Check your code, in particular with respect to how the exogenous processes enter. For example,

ms=mrhos*ms(-1)+mepsils;

has steady state 0, but you provide a non-zero initial value.

3

Hi, thanks for pointing out the error. But once i corrected this and other mistakes ( the current file is updated already), now it gives me an error like this:
The steady state contains NaN or Inf?.
So, what is the potential mistake now?.
Thanks.

4

I meet the same problem. I want to ask : have you solve the problem?

5

Please provide the updated file.

7

Hi, i could not find the solution yet. Once i find, i will let you know.
Thanks.

8

Put resid before steady to see that there are NaN residuals. Somewhere in your equations there must be division by 0 or something like that.

9

Thanks for the reply.
I tried and get the following similar error warning!!:

Error using print_info (line 90)
The steady state contains NaN or Inf

Error in stoch_simul (line 100)
print_info(info, options_.noprint, options_);

Error in dynare_simulation (line 288)
info = stoch_simul(var_list_);

Error in dynare (line 235)
evalin(‘base’,fname) ;

it seems some values makes some expressions nearly zero.
I Checked the equations again and could not find any mistake. it is also probably because of non-existence of unique solution for the system.