Help needed: Unable to find Steady State

Steady state
1

Hi!

I am trying to simulate a disinflation in a non-linearized model using the perfect foresight command using a DSGE NK modified with a behavioral assumption.

However, for the values of parameters, I get the following error:

"Error using print_info
Impossible to find the steady state (the sum of squared residuals of the static equations is 0.0005). Either the model doesn’t
have a steady state, there are an infinity of steady states, or the guess values are too far from the solution

Error in steady (line 143)

  • print_info(info,options_.noprint, options_);*

Error in fairwagemodel2.driver (line 639)
steady;

Error in dynare (line 308)

  • evalin(‘base’,[fname ‘.driver’]);"*

Any suggestions to solve this problem would be greatly appreciated!

Thanks in advance!

Here’s the code:

fairwagemodel2.mod (9.4 KB)

2

Put resid before steady to see that your presumed steady state values do not solve most equations. That suggests an issue in either your computations or the model equations.