Hi all,
I’m a beginner in Dynare and I’m trying to estimate a small-open-economy model. But the error that shows up on dynare is as below:
"Error using print_info (line 32)
Impossible to find the steady state (the sum of square residuals of the static
equations is 6409.7154). 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 102)
print_info(info,options_.noprint, options_);
Error in T1F1.driver (line 878)
steady;
Error in dynare (line 281)
evalin(‘base’,[fname ‘.driver’]);"
Do I need to make the residuals of all the equation zero?
Is there any way I can do to solve this problem?
Attached is the code. Thank you for your time and assistance.
T1F1.mod (8.2 KB)