Numerical initial values or parameters incompatible with the following equations

Steady state
1

Hi,
Please help me with this error and file.

Error using print_info (line 32)
The steady state has NaNs or Inf.
Error in steady (line 102)
print_info(info,options_.noprint, options_);
Error in aliye.driver (line 337)
steady;
Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;
aliye.mod (2.2 KB)

model_diagnostics(M_,options_,oo_)
STEADY: numerical initial values or parameters incompatible with the following equations
2 14
Check whether your model is truly linear. Put “resid(1);” before “steady;” to see the problematic equations.

STEADY: The Jacobian contains Inf or NaN. The problem arises from:

Error using fprintf
Function is not defined for ‘cell’ inputs.
Error in evaluate_steady_state (line 276)
fprintf(‘STEADY: Derivative of Equation %d with respect to Variable
%s (initial value of %s: %g)
\n’,infrow(ii),deblank(M.endo_names(infcol(ii),:)),deblank(M.endo_names(infcol(ii),:)),ys_init(infcol(ii)))
Error in model_diagnostics (line 74)
[dr.ys,M.params,check1]=evaluate_steady_state(oo.steady_state,M,options,oo,options.steadystate.nocheck);

2

Your last equation has

(OSS^(eeta-1))

with OSS=0 and a fractional exponent, resulting in a 1/0.

3

Thank you so much,
still has error for no obvious reason.
aliye.mod (2.2 KB)
Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
Error in stoch_simul (line 107)
print_info(info, options_.noprint, options_);
Error in yes.driver (line 374)
[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_);
Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;

model_diagnostics(M_,options_,oo_)
MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.

4

We had this before. It’s most likely still a timing issue.

5

I checked timig, can parameters values cause this problem?

6

Yes, that is possible, but in about 95% of the cases I encounter in this forum it’s the timing or another mistake in the model.

7

Thank you so much.

8

Hi, professor, I also have the same problem, could you check for me ? Thanks in advance.
88.mod (3.9 KB)

9

When defining lambdaRss, hss is undefined.

10

You mean I can’t just define hss as some numbers, right?

11

It must be defined as the correct number this parameter has.

12

Ok, got it. Besides, may I ask sth. on exogenous variable? I am not quite sure how to deal with exogenous variable. I fix the exogenous variable at steady state, is it ok doing so or should I also define or solve the value of the exogenous variable at steady state like other endogenous variables? And I also need to log-linearize the exogenous variable, don’t I ? Thanks!

13

Exogenous variables are exogenous, so their value can be set arbitrarily. However, most processes are naturally normalized to be zero in steady state.

14

Thank u very much Professor!