Problem Optimal Policy

shadow_open.mod (14.2 KB)

Dear all, a question, when performing stoch_simul, this model taken from Costa Junior et al (2020), works perfectly and gives good results, steady state equal to zero in most of the variables. But when trying to perform optimal policy exercises, it does not find the steady state or tells me that there are missing values or equal to infinity. Could it be a bug in dynare or I’m doing something wrong.

Best regards

The steady-call will not work before calling ramsey_model. Moreover, you did not leave out the Taylor rule when defining an instrument. Finally, you hardcode the steady state of the interest rate, despite that being the instrument.