Impossible to find a steady-state

Steady state
1

Good Morning. I’m running Rubart (2006), and I still have problems with the steady state computation. I don’t understand wheter my initial guesses are so far from the real ones to make impossible for dynare to calculate a steady state, or if there is something totally wrong in the structure of the model (that should be the replication of the one in the paper). One of the most critical points for me is the presence of the lagrange multiplier (that I call here gamma). I’m not sure I should include it in the model, but in the f.o.c of the paper is present. In the code I attach I’m treating it as a constant, for the moment, trying to assign it a plausible value. including it or not doesn’t make any difference in my results, and the manual calculation of the steady state value for all the variables, very long and complicated since there are many variables and equations that are not linear, gives me results that dynare doesn’t like.
In particular p_s, p_u, q_s, and q_u should be probabilities, but each value given to s_s and s_u makes impossible to make them all smaller than one at the same time.
I don’t really know what to do. If someone has some suggestions about
1 how to simplify the manual calculation of the steady state
2 which ones could be the possible sources of mistake
the help will be extremely appreciated and important.

thank you
provasenzagamma.mod (4.6 KB)

2

You are using a check for equality == instead of a proper equal sign.

3

Thank you. That was a mistake. Despite this, I still have problems with the steady state. I attach here the new version of my model: I expressed everything as a function of s_s and s_u, trying to assign to them plausible guessed values. I believed dynare was able to find the real steady state starting from close guesses, but every value gives me no results, and I have no idea about how to determine the value for s_s and s_u starting from the model. I don’t really know what to do. I’ m quite sure all the equaitions and the model are correct.provasenzagamma.mod (5.3 KB)

4

It is not good practice to have actual numbers inside steadystatemodel, you should use parameters which are set outside. Anyways, you should probably use initval instead of steadystatemodel and work out the analytical stead state as best as you can, so dynare only needs to find a few instead of all variables.

5

Your uploaded file has

 23 equations but 25 endogenous variables!
6

No sorry there are 23 equation just because I sent you a draft in which I put a %in front of two equation. Even correcting the model the problem exixts

7

Then please provide the most recent file