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”.
I am replicating the open economy model with money (chapter 13. The ABCs of RBCs) and encountering similar error message “The steadystate file did not compute the steady state”
Any guide to tackle the problem would be much appreciated. OEM.mod (2.2 KB)
Many thanks. As advised, I used the variable in level not in exp(). But, unfortunately, I received the same error. However, the model runs with initvals? I have uploaded the edited .mod file.
I often encounter this problem i.e. model run with initval but not with steady state model block. Could you please advise the source of error and how to handle.
I could find the steady state of my model analytically (with the assumption of L=1/3 for each agent) and the model works properly in Dynare. However, when I use the steady state numbers as initial values in the initval section, Dynare cannot find steady state and it gives lots of Nan and Inf. What can cause this problem?
Dear Professor, I would like to ask you a question：
In the Bayesian estimation process of the DSGE model, the conventional approach is to change the “initval” module to the “steady_state_mode” module. But if the steady state of the model is not calculated in the “initval” module of the mod file, but is calculated by a separate m file, then what should be done when performing Bayesian estimation