Hi, I’m trying to solve a model with two inequality constraints (Schmitt-Grohé and Uribe, 2015): one for hours worked, h<=h_ss, and another one for debt d, which is assumed at t-1 and due at time t (i.e., a predetermined variable) , d(+1)<=d_bar, where d_bar is the debt limit set equal to 1. I write the associated complementary slackness conditions using the logical operators and the max function. However, the following problem occurs:

[quote]SOLVE: maxit has been reached
Not enough input arguments.

Error in resid (line 87)
[N,nz]=size(z);

Error in steady (line 90)
resid;

Error in baseline (line 157)
steady;

Error in dynare (line 180)
evalin(‘base’,fname) ;[/quote]

Is this a problem of bad initial conditions ? Thanks

There might be another issues. With the unstable version, I get:

[quote]STEADY-STATE RESULTS:

cT 109.933
h 1
w 92948.7
d -1198.26
lambda -9.99201e-16
mu 0
unem 0
output 1
Error using print_info (line 54)
One of the eigenvalues is close to 0/0 (the absolute value of numerator and denominator is smaller than 1e-06!
If you believe that the model has a unique solution you can try to reduce the value of qz_zero_threshold.

Error in check (line 76)
print_info(info, 0, options);

Error in baseline (line 171)
oo_.dr.eigval = check(M_,options_,oo_);

Error in dynare (line 223)
evalin(‘base’,fname) ;

model_diagnostics(M_,options_,oo_)
MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 1 colinear relationships between the variables and the equations
Colinear variables:
cT
w
d
Colinear equations
2 3 5

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.