# Finding Steady state of New Keynesian Model

**URL:** https://forum.dynare.org/t/finding-steady-state-of-new-keynesian-model/2093
**Category:** Dynare contributions and examples
**Created:** [4 August 2011 01:05 UTC](https://forum.dynare.org/t/finding-steady-state-of-new-keynesian-model/2093 "2011-08-04T01:05:01Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![Anh\_Nguyen](https://forum.dynare.org/letter_avatar_proxy/v4/letter/a/e47774/32.png) [@Anh\_Nguyen](https://forum.dynare.org/u/Anh_Nguyen)
#### Post date: [4 August 2011 01:05 UTC](https://forum.dynare.org/t/finding-steady-state-of-new-keynesian-model/2093/1 "2011-08-04T01:05:01Z")

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I am having a problem with the steady state as follows, can anyone help me?

var x infl i;

varexo uis uas ui;

parameters alf bet lam rho pi1 pi2;  
bet=0.99;  
rho=-ln(bet);

model;  
x = x(+1)-alf\*(i-infl(+1)-rho)+uis;  
infl = bet_infl(+1)+lam_x+uas;  
i = rho +(1-rho)_(pi1_infl+pi2\*x)+ui;  
end;

varobs x infl i;

initval;  
x=0;  
infl=0;  
i=rho;  
end;  
steady;  
check;

estimated\_params;  
alf, normal\_pdf, 1, 0.5;  
lam, beta\_pdf, 0.5, 0.18, 0,1;  
pi1, gamma\_pdf, 1.5, 0.25;  
pi2, gamma\_pdf, 0.5, 0.1;  
stderr uis, inv\_gamma\_pdf, 2, inf;  
stderr uas, inv\_gamma\_pdf, 2, inf;  
stderr ui, inv\_gamma\_pdf, 2, inf;  
end;

estimation (datafile=Vietnam,mh\_replic=100000,prefilter=1, conf\_sig=0.90) x infl i;

_ **The error as follows:** _  
Warning: **Some of the parameters have no value (alf, lam, pi1, pi2) when using steady. If these parameters are not  
initialized in a steadystate file, Dynare may not be able to solve the model…**

> In test\_for\_deep\_parameters\_calibration at 46  
> In steady at 33  
> In vietnam at 101  
> In dynare at 132  
> STEADY: numerical initial values incompatible with the following equations  
> 1 2 3

Thank you very much

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### Author: ![olayenidynare](https://forum.dynare.org/letter_avatar_proxy/v4/letter/o/e36b37/32.png) [@olayenidynare](https://forum.dynare.org/u/olayenidynare)
#### Post date: [4 August 2011 16:16 UTC](https://forum.dynare.org/t/finding-steady-state-of-new-keynesian-model/2093/2 "2011-08-04T16:16:54Z")

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The message means that you have not calibrated the listed parameters. You must calibrate all the parameters in the parameters block whether or not you’re still going to estimate them.

Also note that you could also use  
#rho=-ln(bet);  
in the model block instead of calibrating it the way you did.

Hope this helps.

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### Author: ![Anh\_Nguyen](https://forum.dynare.org/letter_avatar_proxy/v4/letter/a/e47774/32.png) [@Anh\_Nguyen](https://forum.dynare.org/u/Anh_Nguyen)
#### Post date: [5 August 2011 11:41 UTC](https://forum.dynare.org/t/finding-steady-state-of-new-keynesian-model/2093/3 "2011-08-05T11:41:38Z")

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Thank you very much. It finally works.  
Best,

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### Author: ![kunal](https://forum.dynare.org/letter_avatar_proxy/v4/letter/k/dec6dc/32.png) [@kunal](https://forum.dynare.org/u/kunal)
#### Post date: [27 April 2015 15:51 UTC](https://forum.dynare.org/t/finding-steady-state-of-new-keynesian-model/2093/4 "2015-04-27T15:51:03Z")

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Can any one please post a steady state file for New Keynesian model

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### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [28 April 2015 05:10 UTC](https://forum.dynare.org/t/finding-steady-state-of-new-keynesian-model/2093/5 "2015-04-28T05:10:31Z")

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There is one in the examples folder of Dynare.