Dear all,

I am trying to replicate a simple model for a small open economy, including oil price schocks. The original .mod file I using as a base has a model (linear) block, since all equations were manually log-linearized before inputing them into matlab, and it runs. As for my model (bruna.mod, attached), since I did not want to manually linearize and compute the steady state, the model block has non-linear equations. The data file is also available below.

When I try to estimate, I get the following errors:

dynare_estimation_init:: The steady state at the initial parameters cannot be computed.

Error using print_info (line 90)

The steady state contains NaN or Inf

Error in dynare_estimation_init (line 565)

print_info(info, 0, options_);

Error in dynare_estimation_1 (line 116)

dynare_estimation_init(var_list_, dname, [], M_, options_, oo_, estim_params_, bayestopt_);

Error in dynare_estimation (line 105)

dynare_estimation_1(var_list,dname);

Error in tesebm2020 (line 566)

oo_recursive_=dynare_estimation(var_list_);

Error in dynare (line 235)

evalin(‘base’,fname) ;

Could someone please help to understand how do I put a code for Dynare to perform the linearization and find the correct steady states?

Thank you in advance,

Best,

Bruna

bruna.mod.mod (9.3 KB)

dados_dynare_18abril.xls (56.5 KB)