hi, I’m relatively new to the dynare, and I entered the dynare code as attached,

but dynare keeps saying that something’s wrong with the code.

I put the estimated steady state value written in parameters, below the inival;

and the error message says that r is not a parameter; how should I handle it?

thanks in advance!

hw3.mod (1017 Bytes)

In line 31 you writed load file A.

What does this mean in your Dynare file ??

sorry I uploaded old version.

this is the correct one.

thanks!!

since the error message says that it cannot find the steady state, does it mean that something’s wrong with my equations? or other potential issues?

oldversion.mod (1013 Bytes)

Don’t do an exp()-substitution. Use

hw3old.mod (926 Bytes)

wow thanks a lot! it works!

by the way, why do I have to erase exp() substitution?

I referred to the sims(1997) and it says that I have to put exp in order to respond to

automated log transformation of dynare.

and what would be the difference to use steady_state_model; instead of initval;?

It would be much appreciated to let me know further

Thanks in advance!

You pit everything in exp but did not adjust the starting values for the steady states. Given Dynare‘s ˋloglinearˋ option, a manual exp substitution is not recommended due to it being very error prone.

I see, then I should have entered log(number) in initval;

in order to make original version run. Or possibly log(mathematical expression w.r.t. parameters)?

I will try that later.

I will try not to use exp as you recommended.

Thanks!

Yes, but note that I also fixed a few minor additional issues.

Thank you!!

I really appreciate it