I can't find steady state

General DSGE Modeling
1

Hi, this is my first time using dynare.
I’m very beginner here.

I want to find steady state from several equations but the program says :

Residuals of the static equations:

Equation number 1 : -0.16667 : 1
Equation number 2 : -0.00024796 : 2
Equation number 3 : -2.0377e-05 : 3
Equation number 4 : 5.2558e-06 : 4
Equation number 5 : 0.00024559 : 5
Equation number 6 : 1.9186e-05 : 6
Equation number 7 : 1.3557e-07 : y
Equation number 8 : -4.7723e-06 : wcp
Equation number 9 : 4.3265e-06 : wci
Equation number 10 : -9.1176e-05 : whp
Equation number 11 : 1.231e-05 : whi
Equation number 12 : -0.0049191 : ih
Equation number 13 : 0 : 13
Equation number 14 : -1.2 : 14
“Impossible to find the steady state (the sum of square residuals of the static
equations is 1.4678). Either the model doesn’t have a steady state, there are an
infinity of steady states, or the guess values are too far from the solution”

I’m adding my mod file and I need your advice to solve this problem.

Please take a look and give some help.
seminar_m.mod (1.1 KB)

2

Check your model.

1/ci = 9/40 * 1/ci(+1);

does not have a steady state. It is an equation x=a*x that requires x to be 0, which in turn requires ci=\infty

3

Oh I did mistake on that part really thanks a lot.

Actually that equation was [ 1/ci = 9/40 * 1/Et(ci(+1)) ] .

Et means that agents’ expectation of ci for next period.

How can express this ?

4
  1. That does not alter anything as the expected value drops in steady state
  2. Use the EXPECTATION (INTEGER) (MODEL_EXPRESSION) operator. See the manual.
5

Really thanks a lot.
I think I need more study about dynare and economics.

Sorry for bordering you :wink: