Dear All

I am fairly new to dynare/matlab, and i am having some troubles with solving the steady states for my model using numerical methods (fsolve). I am trying to solve 7 equations with 7 unknowns from Iacoviello (2017) but where i have changed from log-utility to non-separable utility which complicates things a bit.

I am trying to solve the model in a zero-lower-bound setting.

The codes for the steady states and fsolve file are attached, and the “error” i am having is the following:

“Error using Vertcat. Dimensions of matrices being concatenated are not consistent” I know this is an error in the dimensions of the equations, i just don’t know where the error lies (probably in the solver file).

Other than this i am not even sure i can use Fsolve the way I have tried to, so please point out if it is all wrong from a methodology perspective.

(All the estimations values are from Iacoviello (2017) and Christiano (2011))

Thank you all in advance.

baby00_steadystate_example.m (212 Bytes)

findSS.m (1.2 KB)

Notice: The Steady_state_example file is NOT cleaned up, hence so many equations commented out.