DSGE Modell Error steady state

[framarz]

Good morning at all!
I’ m trying to run the paper of Erica Perego(2020), ‘Sovereign risk and asset market dynamics in the euro area’. However I encountered the error of impossible to find the steady state. I have checked the model equation and the steady state equations and they look like goods. I’m not sure what I should do to solve this problem. Could someone help me, Thanks!

peregopaper.mod (9.2 KB) run.m (9.4 KB)

[jpfeifer]

Your computed initial values lead to very large residuals. For example,

Equation number 2 : 51.849 : lampda_star

That suggests a mistake somewhere.

[framarz]

Thank you for the answer,
So the error will be in the computation of the initial values?

[jpfeifer]

Not necessarily. See

Indeterminacy problem

No, if you disable it, the provided initial values are taken to be the steady state, regardless of whether they satisfy the entered model equations. This means here that the entered model equations and the steady state are inconsistent and at least one of them has a problem.