Problem with initval

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)

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

Where can I begin to solve the issue? Thanks!

Rem.mod (2.9 KB)

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

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


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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