Hi,

I would really appreciate any help or indication of what I am doing wrong here greatly!

I have followed all the suggestions provided in earlier discussions on the use of the steady state helper files for the use of fsolve or fzero to solve an equation non-liner in a particular variable. I have used the NK_baseline.mod examples to construct my .mod and helper files. However, I get the following error when I run the mod file:

Equation solved at initial point.

fsolve completed because the vector of function values at the initial point

is near zero as measured by the selected value of the function tolerance, and

the problem appears regular as measured by the gradient.

Residuals of the static equations:

Equation number 1 : 0

Equation number 2 : 0

Equation number 3 : 0

Equation number 4 : 0

Equation number 5 : 0

Equation number 6 : 0.00085961

Equation number 7 : 0

Equation number 8 : -0.0003351

Equation number 9 : 0

Equation number 10 : 0

Equation number 11 : -0.29867

Equation number 12 : 0

Equation number 13 : 0

Equation number 14 : 0

Equation number 15 : 0

Equation number 16 : 0

Equation number 17 : -0.035441

Equation number 18 : -0.071779

Equation number 19 : 0

Equation number 20 : 0

Equation number 21 : 0

Equation number 22 : 0

Equation number 23 : 0

Equation number 24 : -0.0031368

Equation number 25 : 0

Equation number 26 : 0

Error using print_info (line 72)

The steadystate file did not compute the steady state

Error in resid (line 112)

print_info(info,options_.noprint, options_)

Error in firm_vol2_2 (line 276)

resid(1);

Error in dynare (line 180)

evalin(‘base’,fname) ;

Despite spending hours and days pouring over it I cannot understand what exactly is wrong. This is the first time I am using the helper function so any help will be greatly appreciated. I attach the mod and helper files. Thanks a lot!!

firm_vol2_2_steady_state_helper.m (728 Bytes)

firm_vol2_2.mod (3.96 KB)