Hi,

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.

Umang

datanew.m (6.88 KB)

first11_steadystate.m (2.33 KB)

first11.mod (7.16 KB)