Initial values using Fsolve

Hi,

I am trying to enhance Gambacorta and Signoretti paper by adding a disturbance shock for the loan amount as well as an impatient household.
Although, i manage to replicate the original paper with the help from the authors and getting initial values using Fsolve, i cannot find the steady state with the new items i have added. Basically, the solver stops prematurely, so i am not sure whether it is because of the No of iteration or a model without a solution.

Can you help?

Attached is the file .m file used to find the solution.
DSGE_19.m (3.7 KB)

You need to provide the full files.

@jpfeifer, attached you may find both filesDSGE_Fsolve.mod (9.2 KB) DSGE_19.m (3.7 KB)

Your mod-file returns various preprocessing errors. Did you upload the most recent version?

@jpfeifer basically yes, but i thought that the issues had to only do with the steady state.
At any case, i made some amendments and can solve the model, but when changing some of the parameters in the monetary rule (i.e phi_AP, phi_B) the model cannot be solve. Do i need completely new initial values in order to solve it? Why is this DSGE_19_Shocks_2.mod (5.6 KB) happening?

Attached the model

and the fsolve functionfuncheck_2.m (3.1 KB)

Again I am getting an error

ERROR: DSGE_19_Shocks_2.mod: line 42, cols 1-6: syntax error, unexpected VAREX

because you forgot a semicolon.

Attached the correct file.DSGE_19_Shocks_2.mod (5.6 KB)

The attached file runs and computes a steady state, so where is the problem?

The issue is that if i change some of the parameters in the monetary rule (like phi_AP or phi_B) the model cannot be solve.

Please be more careful and precise. When does that happen and what is the error message. Using

phi_AP   = 1;    
phi_B    = 1;    

works.

@jpfeifer Thank you vrey much for your prompt answer and help.
Basically i was putting in phi_pie=0 and was plugging phi_AP and phi_B to 0.5, to check if the monetary rule doesn’t target inflation at all and targets y or just AP.

Again, you did not answer my question. What is the error message in this case?

@jpfeifer excuse me for my late response.When i was putting in phi_pie=0 and was plugging phi_AP and phi_B to 0.5, to check if the monetary rule doesn’t target inflation at all and targets just AP or loans i receive the below:
Warning: Matrix is singular to working precision.

In trust_region>dogleg (line 202)
In trust_region (line 112)
In dynare_solve (line 185)
In evaluate_steady_state (line 223)
In resol (line 104)
In check (line 73)
In DSGE_19_Shocks_2 (line 435)
In dynare (line 235)
Error using print_info (line 83)
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 in check (line 76)
print_info(info, 0, options);

Error in DSGE_19_Shocks_2 (line 435)
oo_.dr.eigval = check(M_,options_,oo_);

Error in dynare (line 235)
evalin(‘base’,fname) ;

My guess is that without inflation feedback, the steady state inflation cannot be endogenously determined (indeterminacy). For that reason, the steady state cannot be found.