Help with dynare, SS block not working, perhaps sth wrong with code

I don’t know what is going with my code.

I was given a fully functional code, but then i’m required to modify it. Precisely I’m asked to break with one price law (P=SP*) and substitute it with a Calvo pricing rigidity so I’m asked to take away this equation:


and substitute it for these:

exp(p_F)*exp(mc_F)=exp(rer); //32
exp(f1F)=exp(p_tilde_F)^(1-EPSILON_F)*exp(y_ast)*(EPSILON_F-1)/EPSILON_F+THETA_F*BETA*exp(la(+1))/exp(la)/exp(ppi(+1))*(exp(p_tilde_F)*exp(ppi)/exp(p_tilde_F(+1)))^(1-EPSILON_F)*exp(ppi_F(+1))^(EPSILON_F)*exp(f1F(+1)); //33
exp(f2H)=exp(p_tilde_F)^(-EPSILON_F)*exp(y_ast)*exp(mc_F)+THETA_F*BETA*exp(la(+1))/exp(la)/exp(ppi(+1))*(exp(p_tilde_F)*exp(ppi)/exp(p_tilde_F(+1)))^(-EPSILON_F) *exp(ppi_F(+1))^(EPSILON_F+1)*exp(f2F(+1)); //34
exp(f1F)=exp(f2F); //35
1=THETA_F*(exp(ppi_H)/exp(ppi(-1)))^(EPSILON_H-1)+(1-THETA_F)*exp(p_tilde_F)^(1-EPSILON_F); //36
exp(p_F)/exp(p_F(-1))=exp(ppi_F)/exp(ppi); //E37

I carefully added f1F f2F p_tilde_F ppi_F mc_F as variables (took away 1 eq, added 6 and added 5 variables) and the parameters EPSILON_F and THETA_F.

Finally in the SS block I wrote:


But dynare keeps saying that rer_ss is not defined when I clearly defined above as:

Please help.
Thanks in advance.
Sorry if I haven’t met the format the forum is expected to met. First time here.

  1. Please provide the full file
  2. Only do exp()-substitutions once the model runs.
  3. and the mod-files accompanying it may be helpful.

Hi jpfeifer, I send you the code.Calvo.mod (8.9 KB)

The problem is now that the steady state doen’t compute the SS, however the residuals are 0 (almost all)

  1. Again

Even better, use auxiliary variables. See Question about understanding irfs in dynare
2. You need to find out whether the problem is your steady state computations or whether there is still a mistake in the model equations.