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 - #4 by jpfeifer
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.