I need help....Steady state error

Hi there, I built an extension of the Kiyotaky Mooore model. I’m trying to use Dynare to calibrate the model. I’ve tried so many times, even changing the equations order, and I’ve got the following error message:

Warning: Some of the parameters have no value (q_ss, uu_ss, b_ss) when using steady. If these parameters are not
initialized in a steadystate file or a steady_state_model-block, Dynare may not be able to solve the model…

I’ve got this message so many times, I don’t know what is wrong. The parameters q_ss, uu_ss, b_ss are defined on the calibration section.

I’m attaching the dynare code

Thank you very much for your help!

Enrique Dawsonmodelo_km2.mod (1.8 KB)

Hi enriquedawson,

the problem is that your calibration does not work because the parameters depend on each other, e.g. when Dynare wants to take the value of uu_ss it needs to have the ones of kk1_ss and kk2_ss but those are only defined later and, again, would need to have uu_ss to be solved.
I suggest you have a look at the great video by Willi Mutschler describing how to include and calculate the steady state in the mod file. I am sure you will be able to solve your problem.