Apologies in advance for what may be an elementary question: I am currently working with a a NK life cycle model, and I am unable to find a steady state in Dynare.

Despite using fsolve in MATLAB and setting up initial values from the variables found, Dynare is unable to find a steady state:

Error using print_info (line 83)

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

Any assistance or advice would be much appreciated. I hereby attach the model files and MATLAB steady state fsolve files.

mita_dynamic.pdf (105.5 KB)

mita.mod (10.2 KB)

solve_steady.m (520 Bytes)

myfun.m (4.9 KB)