Problem with initval

Steady state
1

Hi! I have a problem with my model, the thing is, when I run the model with only the first 17 equations/variables, the model works, but when I add the 18º equation/variable (NX) it does not, although I know it’s a very important one, I believe I can’t be too wrong with the initial values if I get it right with just the 17 equations.

It gives me this:
"Error using print_info (line 32)
Impossible to find the steady state (the sum of square residuals of the
static equations is 486643227.6297). Either the model doesn’t have a
steady state, there are an infinity of steady states, or the guess
values are too far from the solution

Error in steady (line 102)
print_info(info,options_.noprint, options_);

Error in Rem.driver (line 309)
steady;

Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;"

Where can I begin to solve the issue? Thanks!

Rem.mod (2.9 KB)

2

Don’t do exp()-substitutions until the model works.

3

Hi Johannes

Do you mean you should log-linearize by hand first? An then once you know the model solves introduce the exp() subsititution?

Kind Regards

Niall

4

No, don’t loglinearize by hand. But use the untransformed FOC. Then, when the model works, append the logged variables you need. See

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