Help Using bayesian dynare


I am trying to use bayesian DSGE to estimate a model with financial accelerator. Please find the mod and steadystate file attached. When I run the file i get an error saying that the steadystate values dont solve the static model. However if I use the model values generated by the steadystate file as initval, the basic model is solved but that would pose problem at the estimation stage.

I am unsure if the way I write steadystate file is correct i.e if dynare is facing problems with loading the result from steadystate file to mod file. Also it seems that the local model variables (declared with # in the model block) are not computed correctly. What could be the potential problem with that?

Any help is deeply appreciated.

datanew.m (6.88 KB)
first11_steadystate.m (2.33 KB)
first11.mod (7.16 KB)

I was earlier using Dynare 4.0.3, but when i shift to 4.2.2 the problem with the steadystate file is solved, However is still have the problem with the local model variables in the mod file. For instance, I need c_ss, I_ss and qh_ss for the ‘equations linking data to the model variables’. I use the # command to compute these variables in the model block but it doesnt seem to be working. How can I model these local model variables in dynare?

Thanks in advance!


If these variable correspond to the steady state value of some other variables, you may want to use the STEADY operator (see the reference manual).