I don't know what cause this problem. Is it my model that doesn't have a steady state, or is there a problem with my steady state computation?

Steady state
1

Dear Professor,

I have encountered an issue while studying. The error message is:

Error using print_info The steadystate file did not compute the steady state
Error in steady (line 102) print_info(info,options_.noprint, options_);
Error in kgsss.driver (line 404) steady;
Error in dynare (line 281) evalin(‘base’,[fname ‘.driver’]);
kmo.m (1.8 KB)
Error in kmo (line 77) dynare kgsss

I am not sure if the problem lies in my model setup or if there is an issue with the steady state computation. I have already uploaded the code file. Can someone help me with this?

Thank you very much.
kgsss.mod (3.2 KB)

2

This really bothers me. I have been trying to make modifications based on some online posts for a long time, but still cannot solve the problem.

3

Are you sure your approach is feasible? What in your model assures

y=1;

in steady state?

4

Sorry, I am a beginner, so my questions may be a bit silly. My mentor asked me to imitate a learning case before. His approach is to set y=1 directly, and set h=1/3. Then calibrate the relevant parameters to obtain the steady-state value. Is it not advisable to obtain the steady-state value in this way?

5

Yes, that is the correct approach. But what is the parameter you fix to achieve output of 1?

6

I adjusted the parameter ksi2 in my model, and finally found out my mistake tonight. I made a rookie mistake and some of my code inputs were incorrect. Thank you very much for your time and guidance in helping me confirm the feasibility of this method. I am very sorry for wasting your time due to my rookie mistake. Thank you again.

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