Hello,

I’m trying to run a DSGE model, but every time I run the model I get the following error message:

Error using print_info (32)
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 solution

print_info(info,options_.noprint, options_);

I know that it is a question that has been done several times, but I really need help. I already analyze and got the analythical solution of the steady state (attacht excel file), I look through each of the equations of the code a lot of times to diminish the residual errors but I’m stock in equations 8 and 10. The thing is that my teacher taught me to solve a DSGE model having each endogenous variable within an exp function. So when I enter the initial values I have to write as an example C=log(2681) and this for each variable using log, so when I got the steady state variables I got that my trade balance of commercial goods (NXtr) in the steady state is negative (-8.2085) so when I put this number in initial values of the model NXtr=log(-8.2085), well as it is a logarythm then it does not exist. So how can I address this issue? if I am absolutely certain that is the steady state of the variable and to proove I made all the residuals except of two equations out of 17 = 0.

Thank you very much.CodigoProyectoSeminarioInv.mod (4.2 KB) Solucion Steady State.xlsx (9.8 KB)

I attatched .mod file.

Hi KireFdz,

I met a similar problem regarding negative log inputs couple of days befroe. I try to partially answer it.

The following resource is useful:
Pfeifer (2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models”
or you can find it at https://www.dynare.org/resources/

The general answers are located among Section 4.2 to Section 4.5 (Page 48). Especially read Footnote 25 and Remark 19. In words, if the variables can be zero or negative, we do not put them into \exp(), instead just write what you see into the model; section.

Overall, there will be a mixing format of both log-linearization for positve variables and linearization for other variables in your dynare model.

If my explanation was wrong, please kindly let me know. Thank you in advance!

Hi Hello Dynare, thanks for taking your time in answering me. You were right and I read the Guide provided.
When I changed some of my equations by removing the exp() it worked and gave me the steady state variables. But I met another problem:
Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
Error in stoch_simul (line 103)
print_info(info, options_.noprint, options_);
Error in CodigoProyectoSeminarioInv.driver (line 314)
[info, oo_, options_] = stoch_simul(M_, options_, oo_, var_list_);
Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;

I attacht the model with corrections and would be really thankfull if I could still some of your time again. Thank you in advance. CodigoProyectoSeminarioInv.mod (4.1 KB)