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.