NK model steady state

General DSGE Modeling Replication Attempts
1

Hi

Im having some problems to solve a NK model presenting in the following paper about the Japanase problems with deflation and demographics aeaweb.org/conference/2015/retrieve.php?pdfid=949.

I try to solve it using the steady_state_model block but the equations turn into non-linear ones and I dont know how to deal with it properly. I refuse to use the initval block because I dont know how to guess the values properly for this exercise
The equilibrium conditions of the models can be founded in pages 35 to 38.

Thanks in advance
baseline2.mod (8.27 KB)
steady_state.pdf (86.1 KB)

2

Where exactly is the problem? You could use a steady state file to solve a nonlinear equation. An example is the NK_baseline.mod in the Dynare examples folder.