I am trying to replicate the results of Heutel (2012), “How should environmental policy respond to business cycles?”. The author had listed all F.O.C in his paper and appendix, including matlab code. I am trying to transform the procedure to dynare code with the attached parameters. I substituted the initval block with the value of teady state getting from author’s results. However, I always get the same result and error:
"error using print_info (line 74)
Impossible to find the steady state. 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 92)
error in dynare_solvesystem_tax2 (line 247)
error in dynare (line 185)
evalin(‘base’,fname) ; "
I would be extremely thankful if someone could help me? I have attached all files for your reference.