Not running in Dynare 4

Hi Michel,

I have attached 2 versions of a program (it is a simple 2 country monetary RBC model).

The file q11t.mod gets dynare to solve for the steady states.
The file q11.mod gets the steady states from the file q11_steadystate.m.
The rest of the code is the same.

The two programs run in Dynare 3.065 but not in the latest version of Dynare 4.0.1. Dynare will not solve for the steady state. I cannot tell from the error message what the problem is. Perhaps there is another bug in 4.0.1.

I would be oblidged if you could run either program in Dynare 4.0.1 and get back to me.


Moq11.mod (16.6 KB)q11_steadystate.m (7.98 KB)q11t.mod (22 KB)


First, the way Dynare deals with steadystate file has change between v3 and v4, so your example composed of q11.mod and q11_steadystate.m cannot work directly in v4.

So you should use q11t.mod as a starting point.

The point is that the steady state you provide is actually not a steady state of the model. The residuals are non zero on equations 6 and 8 (for u_n_h and u_n_f).

Dynare 3 accepts your file because you provide solve_algo=3 in steady(). This option does not exist in v3, and was introduced in v4. When you use it in v3, Dynare doesn’t complain and accepts your initval as a steady state (we should have added an error message instead).

Remove solve_algo=3, and you will see that Dynare v3 is not able to compute the steady state either. You probably made a mistake in the formulas used to manually compute your steady state.



Thank you.

I have a few queries.
After running the following command
stoch_simul(order=1,irf=0,periods=200,hp_filter=1600) y_h y_f ;
I check the sample size.

There are 203 rows (observations) in y_h. Where did the 3 extra observations come from?
Is there a way of checking how many observations were used in the file calculating the simulated moments?

There was a file called hpfast.m in Dynare version 3. Where is this file in version 4?