I did just that and I’m getting something weird. I rewrote the euler equations and verified that the latex output was just as I wanted it.

Before changing the euler I got this :

Residuals of the static equations:

Equation number 1 : 0.00016013 : 1

Equation number 2 : -1.6975e-05 : 2

Equation number 3 : -3.2286e-05 : 3

Equation number 4 : 9.8123e-05 : iT

Equation number 5 : 0.00018538 : iTstar

Equation number 6 : -4.0936e-05 : iNT

Equation number 7 : -7.7857e-05 : iNTstar

Equation number 8 : -4.5743e-06 : 8

Equation number 9 : -8.9568e-07 : 9

Equation number 10 : -1.0471e-06 : 10

Equation number 11 : -2.5698e-07 : 11

Equation number 12 : 1.7533e-07 : 12

Equation number 13 : 7.3096e-08 : 13

Equation number 14 : 1.2089e-06 : 14

Equation number 15 : 0 : 15

Equation number 16 : 2.3023e-06 : 16

Error using print_info (line 32)

Impossible to find the steady state (the sum of square residuals of the static equations is 0.0000). 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

After changing my Euler and looking at latex to ensure I have fitted everything correctly I get this :

Using 64-bit preprocessor

Starting Dynare (version 4.6.2).

Calling Dynare with arguments: none

Starting preprocessing of the model file …

Found 16 equation(s).

Evaluating expressions…done

Computing static model derivatives (order 1).

Computing dynamic model derivatives (order 2).

Processing outputs …

done

Preprocessing completed.

Warning: Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND = 6.847971e-17.

In trust_region>dogleg (line 198)

In trust_region (line 115)

In dynare_solve (line 255)

In evaluate_steady_state (line 221)

In steady_ (line 55)

In steady (line 80)

In bleh.driver (line 304)

In dynare (line 293),

(many more lines like that)

Residuals of the static equations:

Equation number 1 : 0.00022042 : 1

Equation number 2 : -0.00053491 : 2

Equation number 3 : 1.405041487924941e+58 : 3

Equation number 4 : -7.4575e-05 : iT

Equation number 5 : -7.1794e-05 : iTstar

Equation number 6 : -0.00097196 : iNT

Equation number 7 : -0.03 : iNTstar

Equation number 8 : -4.5743e-06 : 8

Equation number 9 : -8.9568e-07 : 9

Equation number 10 : -1.0471e-06 : 10

Equation number 11 : -2.5698e-07 : 11

Equation number 12 : 3.975e-05 : 12

Equation number 13 : 3.6093e-06 : 13

Equation number 14 : -0.0089419 : 14

Equation number 15 : 0 : 15

Equation number 16 : 0 : 16

Error using print_info (line 32)

Impossible to find the steady state (the sum of square residuals of the static equations is

197414158279033195373755462748852588238507181033207763651186978144599868534914674246521121639061763199998962945753088.0000). 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

So obviously here I’ve gone from residual errors of 0.000000 to nearly infinity. Could this be because I have a typo for a exponent somewhere making it going a different path ?

Really looking forward to finding what’s my stupid error.