i modified the dsge model offered by torres in chapter 8 with government consumption. i add different taxes to the model and calibrated according to China data. yet i got the following error and i cannot fix it by changing my calibration and initial value:
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
error gov_govtax_3_lcm.mod (793 Bytes)
steady (line 104)
print_info(info,options_.noprint, options_);
error gov_govtax_3_lcm (line 195)
steady;
error dynare (line 235)
evalin(‘base’,fname) ;