Problem with maximum number of iterations

Optimal Policy
1

Dear all,

I am currently facing a problem with my Ramsey one instrument simulation. More precisely, I now get the following message:

The maximum number of iterations has been reached. Try increasing maxit.

It seems that there is a problem with the SS, but I cannot understand why.
I have a previous version of this model (without g) that works correctly. That’s why I am a bit confused.

When I add g, as you can see in the code, in my SS, each value for the variable g (the one that should create the problem) should be absorbed by the variable t.

Do you have any particular suggestion?

Thank you really a lot for the help,
have a nice day

ramsey_g.mod (5.3 KB)

2

You are overwriting the value of your instrument in your steady_state_model-block. If you use a proper conditional steady state file, it works:
ramsey_g.mod (5.2 KB)

3

Dear Prof, thank you! After your precious suggestion, the model works smoothly!

Thanks again

4

Dear Prof, sorry to bother again on a similar issue. However, I am facing the same problem and error (Ramsey: The maximum number of iterations has been reached. Try increasing maxit.
) with a sligthly different version of my model , where I just changed the equation for t.

I don’t get this error, because before I was calibrating a parameter with this eqaution, while now I am usign this equation to calibrate a SS value of a variable. To me it seems the same procedure, that’s why I am puzzled with the error…

Thanks again for the huge help and for your patience
Have a nice evening

ramsey_g_variation.mod (5.6 KB)

5

I cannot replicate the issue in Dynare 5.1. The steady state for v is 0.980191

6

Dear Prof, thank you very much, sorry to bother again. I downloaded Dynare version 5.1 and I tried to run the attached mod file (which is not the same as the one of the previous message), where I still have the error about the maximum number of iterations.

Since you wrote in the previous answer that the error was not replicated with Dynare 5.1, I am a bit confused about why I get this error again.

Thanks again for the help!
Have a nice day

ramsey_exp_forum.mod (5.3 KB)

7

This one indeed fails to find a steady state. The cause of the problem must be something you changed from the last try.

8

Dear Prof, thank you; I will check again my model and the SS as well.

Thanks a lot!
Have a nice day