Initval vs steady_state_model: The steadystate file did not compute the steady state

Hi,

I tried to play with a very simple model in dynare (see attached). I can solve it by specifying the initial values, but when I tried to use steady_state_model, it won’t give me the solution. It keeps telling me “The steadystate file did not compute the steady state”.

Here’s the dynare code:
a.mod (1.1 KB)

Here’s the full error message:

Error using print_info (line 32)
The steadystate file did not compute the steady state

Error in steady (line 102)

  • print_info(info,options_.noprint, options_);*

Error in a.driver (line 188)
steady;

Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;

Could anyone help me with this problem? Thank you in advance!!

exp(c)^(sigma)=beta*exp(c(+1))^(-sigma)*(1+exp(r));

is wrong. There is a minus in the exponent missing.

1 Like

Thank you so much! Prof. Pfeifer! I really appreciate your help!