I’m trying to run a simple Iacoviello (2005) model with borrowers and savers and a collateral constraint with housing. Every time I run the model I get the following error message:
Error using print_info (line 74)
Impossible to find the steady state. 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
Error in steady (line 92)
Error in Iaco (line 217)
Error in dynare (line 180)
I know this is a very common problem for dynare rookies but I cannot find where my error is. I have tried the model diagnostics command but this returns the following message:
SOLVE: maxit has been reached
model diagnostic can’t obtain the steady state
I am certain that there is a mistake in my model, is there a way of identifying where it is?
Any additional help would be much appreciated.
Iaco.mod (1.86 KB)