Dynare Impossible to find the steady state

General DSGE Modeling Replication Attempts
1

Good evening everyone,

I am trying to replicate a model with climate change, where the production sector is producing using formal and informal technology. Even though I manually calculated and specified initial values for the steady state the model does not seem to work ( I am getting the warning “Impossible to find the steady state (the sum of square residuals of the static equations is 1.0058”).
The function ss_no_policy_S solves for the initial values of the steady state, and the file SSCalculationFinal provides manual calculations for steady state values.
It might also be the case that I have timing issues in my equations, though so far I could not manage to make Dynare solve the model.
Any remark regarding potential issues would be very appreciated :slight_smile:

np_recalibrated_BR_S.mod (7.8 KB)
ss_no_policy_S.m (1.2 KB)
SSCalculationFinal.m (1.7 KB)

2

Check your equations. For example

real_r=R-PAI(+1);

needs to be

real_r=R/PAI(+1);

Also, use resid before steady to see the residuals given your initial values. For some reason, the adding up constraint of L is not satisfied there.