Please help. “numerical initial values incompatible with the following equations”! In these equations I define marginal utility of nonhousing consumption and housing consumption of the young and the old, respectively. My model is a two-period OLG model. I could not find problems in these equations. Please help. mod file is attached.

dynare mymodel

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Local state space iteration (second order).

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

[mex] Quasi Monte-Carlo sequence (Sobol).

Starting Dynare (version 4.3.0).

Starting preprocessing of the model file …

Substitution of endo lags >= 2: added 1 auxiliary variables and equations.

Found 37 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1
- order 2

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

STEADY: **numerical initial values incompatible with the following equations**

3 4 5 6 7 8

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

mymodel.mod (2.7 KB)