I have an issue with the model I am trying to estimate. I defined my variables in logs as I wanted to get IRFs as percentage deviations. However, Dynare says it is impossible to find the steady state. If instead, I redefine variables to be in levels, the code runs fine.

I can’t figure out what is wrong in the code when defining variables in logs. I would appreciate any help. model_witheb_param.m (1.4 KB) model_withebpp.mod (2.9 KB)

I have a related question - I was also trying to do the plot of impulse responses in a different way, by using the policy functions instead. However, in this version of the model where I have some variables in period (t-2) and (t-3), my code does not work due to some array indices issue - do you know how I could fix this?