Hi everyone,

I was able to solve for the steady state using Matlab outside of Dynare, however, I am not able to solve for the steady state in Dynare. My intuition is that I have set TFP (called ‘A’ or ‘Asteady’ in my code below) incorrectly, because those are the equations with the nonzero residuals. I am fairly new to Dynare so I appreciate all comments concerning my code. My .mod file, as well as the two Matlab files used to solve for the steady state, are attached. Thank you very much!

thesisdynare.mod (9.5 KB)

steadystate.m (2.8 KB)

calibration.m (2.6 KB)

What exactly are you doing in your code? Why do you have the strange exp()-substitution instead of simply solving the nonlinear model?

I am using xss*exp(x) in order to express variables as percent changes due to a technology or monetary policy shock, rather than in absolute magnitudes. Do you think this could be the cause of the error message?

That may well be. You should only do exp()-substitutions once the model works. Generally, I rather recommend appending logged values. See