Need Help on Initial Values Setting

Dynare help (legacy posts)
1

Hello,
I am trying to compute the steady state for the file attached below (with the data for estimation).
When I run the code, I get an error message indicating that the initial values are incompatible with some of the steady state equations.
I am also worried about the huge value found for the log posterior. Does the problem has anything to do with this?

Initial value of the log posterior (or likelihood): -2762594.3573

                            Max     Line search  Directional  First-order

Iter F-count f(x) constraint steplength derivative optimality Procedure
0 43 2.76259e+006 -0.01
STEADY: numerical initial values incompatible with the following equations
2 3 34 47 48

If anybody has tips about the appropriate choice for initial values, please, keep me posted.

Thank you in advance,

Best Regards.
data.xls (3.92 KB)
buildata.m (1.94 KB)
model.mod (15.8 KB)

2

Oups! I forgot to say that I had to change the “data” file extension to .xls because .csv cannot be uploaded.

3

This error means that some parameters are either not set, or are set to problematic values (for example a zero which is then used inside a log, or a negative value inside a non-integer power).

The problem occurs on your 2nd equation, on the 3rd, the 34th…

You need to manually investigate all the above equations to find where the numeric issue is.