Impossible to find the steady state but residuals close to zero

Steady state
1

Hi, I’m trying to run my model. When I run it with 14 equations/variables, there’s no problem and if I run model_diagnostics(M_,options_,oo_), it says “MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.”

But when I add 1 equation/variable, it says “Impossible to find the steady state”, and even if I type options_.dynatol.f=0.00018516, I get:
"Error using print_info (line 32)
Impossible to find the steady state (the sum of square residuals of the static equations is 0.0000). 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

Error in steady (line 102)
print_info(info,options_.noprint, options_);

Error in remesas.driver (line 282)
steady;

Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;"

Also, when I run model_diagnostics(M_,options_,oo_), it says
"DYNARE_SOLVE (solve_algo=2|4): number of blocks = 16
DYNARE_SOLVE (solve_algo=2|4): solving block 15, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 14, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 13, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 12, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 11, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 10, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 9, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 8, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 7, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 6, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 5, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 4, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 3, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 2, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 1, of size 1
MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 2 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
c
ctr
cn
ltr
er
w
r
ptr
n
lnc
yn
ytr
NX
y
Relation 2
Colinear variables:
c
ctr
cn
ltr
er
w
r
ptr
n
lnc
yn
ytr
NX
y
Relation 1
Colinear equations
1 2 3 6 7 8 9 10 11 12

Relation 2
Colinear equations
3

DYNARE_SOLVE (solve_algo=2|4): number of blocks = 16
DYNARE_SOLVE (solve_algo=2|4): solving block 15, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 14, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 13, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 12, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 11, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 10, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 9, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 8, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 7, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 6, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 5, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 4, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 3, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 2, of size 1
DYNARE_SOLVE (solve_algo=2|4): solving block 1, of size 1
MODEL_DIAGNOSTICS: The presence of a singularity problem typically indicates that there is one
MODEL_DIAGNOSTICS: redundant equation entered in the model block, while another non-redundant equation
MODEL_DIAGNOSTICS: is missing. The problem often derives from Walras Law."

Where do I start to solve this problem? Because it seems that before I enter the 15º variable/equation, there’s no problem with the equations.

Thanks!

remesas.mod (2.5 KB)

2

Which equation did you add?
Running steady a second time results in

STEADY-STATE RESULTS:

c   		 -12.7816
ctr 		 -13.1069
cn  		 -13.0301
ltr 		 -3.38524e-05
er  		 0.105347
w   		 2.0118
r   		 1.6063
ptr 		 -0.18544
rem 		 0.05
n   		 19.7787
lnc 		 19.7787
yn  		 -12.8641
ytr 		 2.70803
NX  		 2.70803
y   		 3.03409
3

Thanks a lot! How did you get those results? By running the file I uploaded without changing something? I cannot get those results, if I run it as it is in the file, I get the “impossible to find the steady state”.
The equation I added is for the variable y, it is: exp(y)=exp(c)+g*exp(y)+exp(ptr)*rem*exp(y)+exp(NX)
which is the 13º equation that appears on the mod file and seems to be the problem for me.

4

You can try the value above as the initial values. I cannot really reproduce how I got them.
Generally, I can only recommend to do the exp()-substitution once the model works.

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