Impossible to find the steady state Either the model doesn't have a steady state,

Steady state
1

Dear all,

I’m relatively new to Dynare and tried to code a medium-scale model with price-markup(mp) and wage-markup(mw).

Unfortunately, the programme cannot find a steady state even though the residuals of the static equations are close to zero. I checked my model again and tried to increase the precision as well as the iteration number, but nothing really helped.

Thanks in advance for your help!
index.m (1.5 KB)
mediumdsge.mod (5.9 KB)

2

Does your model work without the exp() transformation? It seems that there could be some mistakes. In the production function for instance, there is the variable N that is not transformed by exp() and is thus negative, giving the whole term a complex element.

3

Indeed. See

4

Thank you professor. And I found that my steaty state was wrong, and I had fix it by studying your recommend video.And I also found that you teached the bayes estimation with the example of sf2000,but I did not found the link,could please send it to me
Thank you professor.

5

That file is the example-folder of the Dynare installation. But I usually use

6

wow,thank you again professor.you help me a lot.Thank you.