Hi Prof,@jpfeifer

I am trying to replicate the basic model in Iacoviello(2005) and introduce shocks to housing demand, productivity and monetary policy. I am using initval to compute the steady state but I keep getting the NaN error. See error message below:

warning: Some of the parameters have no value (epsilon) when using steady. If these parameters are not initialized in a steadystate file steady_state_model-block, Dynare may not be able to solve the model…

Randomize initial guess…

Residuals of the static equations:

Equation number 1 : NaN : 1

Equation number 2 : NaN : 2

Equation number 3 : NaN : 3

Equation number 4 : NaN : 4

Equation number 5 : NaN : 5

Equation number 6 : NaN : w_t

Equation number 7 : NaN : y_t

Equation number 8 : NaN : 8

Equation number 9 : NaN : 9

Equation number 10 : NaN : r_t

Equation number 11 : NaN : pi_t

Equation number 12 : NaN : a_t

Equation number 13 : NaN : j_t

Equation number 14 : NaN : eta_t

Equation number 15 : NaN : 15

Equation number 16 : NaN : l1_t

Equation number 17 : NaN : 17

Equation number 18 : NaN : 18

error: The steady state has NaNs or Inf.

error: called from

print_info at line 32 column 5

steady at line 102 column 5

driver at line 326 column 1

dynare at line 293 column 1

Attached is my mod file, any assistance will be highly appreciated.

prac.mod (1.9 KB)