Gertler,Kiyotaki 2012 Financial crises,bank risk

Hello every one,
I am new in dynare. I am reviewing the model of Gertler,Kiyotaki 2012 “Financial crises,bank risk exposure and government financial policy”. Based on other example in the forum, I wrote the simplified model without government and normalized labor=1 in dynare with all details(attache file). But unfortunately for all equations I have and error : Equation number : NaN. what is the problem? Should I linearize model? regarding Dynare is professional in linearizing, I think the problem couldn’t be form the unlinearized model side!
Also I have a questions:

  1. for Y (output) there is two equations that one of them is market clearing. but Dyanre says there are 30 variables and 31 equations. what I should do in this situation( I just ignore one equation that I know it could not be right! ).
    Merci de m’avoir aidé .
    GK1.mod (1.48 KB)

[quote]STEADY: numerical initial values or parameters incompatible with the following equations

Please check for example
i) if all parameters occurring in these equations are defined
ii) that no division by an endogenous variable initialized to 0 occurs[/quote]

You did not provide an initial value for uc, which is then taken to be 0. But in equation 1 you divide by uc, resulting in a division by 0 and thus NaN. Please initialize all variables.

Regarding your question: due to Walras’s Law, one of the market clearing conditions is redundant and you can leave it out.