Impossible to find the steady state with ss analytically solved

Steady state
1

Hi:

I am working on an open economy DSGE model. The baseline model already worked and i want to show the case without financial friction. I have solved the steady state while it still reports ‘impossible to find the ss’. I reduced the tolerance level by
options_.dynatol.f=5e-4;
it shows there is no non-zero residual but still impossible to find the ss. Attach is my code:

executive_frictionless.m (3.0 KB)
frictionless.mod (17.8 KB)

Anyone can help me on this issue?

2

Your order is wrong. You only set the tolerance after calling steady. Also there is a bug in the tolerance criteria in Dynare 4.6.1 and earlier (https://git.dynare.org/Dynare/dynare/-/commit/607a273bb0086ed36831b36327c1b3c456e539b2). Use

options_.dynatol.f=5e-4;
options_.solve_tolf=5e-4;

steady;
1 Like
3

Thanks professor Pfeifer! The problem has been solved by your guidance!