Hello,

I solved the model steady state with the help of excel. Please find attached excel sheet in which I solved the model for the steady state and compare it with the original model steady state. While solving I calibrated the parameter v_p, elasticity of substitution between oil and capital from 0.09 to 0.012. I also found a mistake in the price equations Fp and Kp (1 - lambdap should not be in the denominator and to be removed), which I corrected.

Similarly, in the matlab file I added few missing equations.

I am no more getting Nan of Inf error message but other error messages in the steady state file. I am wondering since I know the steady state now, should I add the steady state in the main dynare file and bypass the original model matlab file? Following are the error messages:

Oil Shocks_ Steady State Solution.xlsx (18.6 KB)

File: OS_steadystate.m Line: 184 Column: 70

Invalid expression. When calling a function or indexing a variable, use parentheses. Otherwise, check for

mismatched delimiters.

Error in evaluate_steady_state_file (line 49)

[ys,params1,check] = h_steadystate(ys_init, exo_ss,M,options);

Error in evaluate_steady_state (line 254)

[ys,params,info] = evaluate_steady_state_file(ys_init,exo_ss,M, options,steadystate_check_flag);

Error in resol (line 77)

[dr.ys,M.params,info] = evaluate_steady_state(oo.steady_state,M,options,oo,~options.steadystate.nocheck);

Error in stoch_simul (line 109)

[~,info,M_,oo_] = resol(0,M_,options_,oo_);

Error in OS.driver (line 939)

[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_);

Error in dynare (line 281)

evalin(‘base’,[fname ‘.driver’]);

Thanks for help.

Regards,

Umer Ameen