Dear all:

I am failry new to dynare and I have the following problem that leads to the error: The Steady state has NaNs or Inf.

If I run the following:

```
nu = nubar+(1-del)*nu(-1)+c*Gov^mu;
Gov = (c*mu*d*exp(-d*H)*R^omeg*Cg)^(1/(1-mu));
```

The code results in the error message.

Note c = 0. Hence, Gov = 0 for all periods and the first equation could be simplified to

```
nu = nubar+(1-del)*nu(-1)
```

c will be different from 0 at some point but first I need to figure out why the model fails.

If I use this simplification and run the following:

```
nu = nubar+(1-del)*nu(-1);
Gov = (c*mu*d*exp(-d*H)*R^omeg*Cg)^(1/(1-mu));
```

Then dynare is able to compute the steady state of the model.

Does anyone have an idea why this happens?

If needed, I can upload the whole model.

Thank you.