Initval block

Hi, the usual problem with initial values:

[quote]STEADY: Derivative of Equation 13 with respect to Variable r (initial value of r: NaN)
STEADY: Derivative of Equation 3 with respect to Variable c (initial value of c: 0)
STEADY: Derivative of Equation 5 with respect to Variable w (initial value of w: 0)
STEADY: Derivative of Equation 13 with respect to Variable w (initial value of w: 0)
STEADY: Derivative of Equation 6 with respect to Variable y (initial value of y: 0)

I provided all the above initial values, so I don’t know what is wrong.

In the initval block you use capital to define r, but capital is only set later. This makes r to be NaN as indicated in the error message.

I’ve changed the order but now the usual tedious problem of steady state occurs. I’ve tried to compute the steady states in a separate .m file but this is the new problem

[quote]Warning: Trust-region-dogleg algorithm of
FSOLVE cannot handle non-square systems;
using Levenberg-Marquardt algorithm instead.

In fsolve at 309
In numerical at 2 [/quote]

Is the unstable version of any help ? I would like to include the numerical values in the initival block. Thanks

With the unstable version and increasing maxit, I was able to find a steady state. But at this steady state singularity ensued. Either there is still an issue with your model or Dynare converged to a second steady state and you need to provide values closer to the actual steady state you are interested in.

How does the unstable version work ? Do I have to type addpath c:\dynare\2014-12-18\matlab or what else ? I’m trying to replicate what you did, in order to check whether I can solve the problem with steady state of another file. Thanks.

Exactly. You treat it like Dynare 4.4.3 and add the matlab subfolder to your path. After that, it should work.

Unfortunately, I cannot find the steady state you mention. I have tried the unstable version 2014-12-18 and increased maxit to 400. How did you find it ?

I used

and got


q -1.00045
mc 1
r 0.0438603
c 0.00103286
k 1.21526e+13
x 1.67277e+12
h 6.46841e+11
pi 0
w 2.62252
R 0.00300903
r_e 0.00300903
y 2.09096e+12
gdp 2.09096e+12
gdp_hat 0
kappa 0
g 4.18192e+11
c_dev 0
w_dev 0
y_dev 0
h_dev 0
gdp_dev 0
pi_perc 0
R_perc 1.20905[/quote]