Initial values

Hi All,

I am trying to make a Bayesian estimation of a DSGE model but I keep getting the message below:

STEADY: numerical initial values incompatible with the following equations
2 3 4 5 6 7 8 9 10

??? Error using ==> dynare_solve
exiting …

Error in ==> c:\dynare\4.0.4\matlab\steady_.m
On line 69 ==> [oo_.steady_state,check] = dynare_solve([M_.fname ‘_static’],…

Error in ==> c:\dynare\4.0.4\matlab\steady.m
On line 52 ==> steady_;

Error in ==> C:\Documents and Settings\Pedro Castro\My Documents\PhD\Research\Structural Models\Brazil\model2.m
On line 136 ==> steady;

Error in ==> c:\dynare\4.0.4\matlab\dynare.m
On line 102 ==> evalin(‘base’,fname) ;

I am attaching my code in the case anyone find it helpful.

Thank you for any comment,
model.mod (4.49 KB)


This means that for equations 2, 3, 4, 5, 6… the initial point given to the Newton solver is not correct.

This can happen for several reasons, the most frequent being:

  • you forgot to initialize a parameter
  • you are taking the log of a negative number, you divide by zero…

Please check your numerical initializations (parameters and initval).