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…

exp(c)^(sigma)=beta*exp(c(+1))^(-sigma)*(1+exp(r)); is wrong. There is a minus in the exponent missing.

jpfeifer July 26, 2022, 2:27pm 6

See

Your xss is negative for some reason.

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