Hi,

I get this error message but i do not know how to solve it:

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

Starting Dynare (version 4.1.1).

Starting preprocessing of the model file …

Found 14 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1
- order 2

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

Warning: Divide by zero.

In baseline1_static at 61

In resol at 91

In check at 45

In baseline1 at 134

In dynare at 132

Warning: Divide by zero.

In baseline1_static at 61

In dynare_solve at 70

In resol at 93

In check at 45

In baseline1 at 134

In dynare at 132

Warning: Divide by zero.

In baseline1_static at 114

In dynare_solve at 70

In resol at 93

In check at 45

In baseline1 at 134

In dynare at 132

Warning: Divide by zero.

In baseline1_static at 115

In dynare_solve at 70

In resol at 93

In check at 45

In baseline1 at 134

In dynare at 132

Warning: Divide by zero.

In baseline1_static at 116

In dynare_solve at 70

In resol at 93

In check at 45

In baseline1 at 134

In dynare at 132

STEADY: numerical initial values incompatible with the following equations

3 7 13

??? Error using ==> dynare_solve

exiting …

Error in ==> resol at 93

[dr.ys,check1] = dynare_solve(fh,dr.ys,options_.jacobian_flag,…

Error in ==> check at 45

[dr, info] = resol(oo_.steady_state,1);

Error in ==> baseline1 at 134

check;

Error in ==> dynare at 132

evalin(‘base’,fname) ;

Thanks in advance for your time and help. Best,

baseline1.mod (1.43 KB)