Finding a steady state

Dynare help (legacy posts)
1

Does any one can help me,

I do not know why it is so hard to find the SS value although I can find analytically.
When I run dynare, it said The steadystate file did not compute the steady state.
Please let me know which equation I might make a mistake in steady state file.

Many thanks in advance.

Residuals of the static equations:

Equation number 1 : Inf
Equation number 2 : 0.3554
Equation number 3 : 8.6767
Equation number 4 : -Inf
Equation number 5 : -Inf
Equation number 6 : Inf
Equation number 7 : 0.045827
Equation number 8 : 11.0135
Equation number 9 : -1.0986
Equation number 10 : -1.0826
Equation number 11 : -0.4806
Equation number 12 : 0.10682
Equation number 13 : Inf
Equation number 14 : -Inf
Equation number 15 : -Inf
Equation number 16 : 0.0099498
Equation number 17 : 2.6453
Equation number 18 : -2.6993
Equation number 19 : 0
Equation number 20 : -1

Error using print_info (line 72)
The steadystate file did not compute the steady state

Error in resid (line 112)
print_info(info,options_.noprint, options_)

Error in steady (line 90)
resid;

Error in NK_house (line 235)
steady;

Error in dynare (line 180)
evalin(‘base’,fname) ;
NK_house_steadystate.m (3.63 KB)
NK_house.mod (1.93 KB)

2

Hi All,

I am a new user of dynare.
I would be appreciate if you can help me why the code doesn’t work.

Thank you

3

As far as I can see, your model variables are not logged (no exp()-substitution, see Pfeifer(2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf), but in your steady state file you take the logs. For example,

zz = zz(-1)^RHOz*exp(ez); %19
has steady state 1, but in the steady state file, you assign

zz = log(Zz);
where Zz is 1.

Also please use the general structure of the steady state file demonstrated in NK_baseline_steady_state.m instead of the strange one you use. Selectively setting parameters is prone to errors.