Problem with Steady state solution

Dynare help (legacy posts)
1

Hi,

I am trying to replicate ‘On the Sources of Aggregate Fluctuations in Emerging Economies’ (Roberto Chang nad Andres Fernandez). I could not find the steady state values
and DYNARE is producing the following error:

??? Error using ==> print_info at 57
Impossible to find the steady state. Either the model doesn’t have a unique steady state
of the guess values are too far from the solution

The Residuals of the equations:

Equation number 1 : 0.00036399
Equation number 2 : 0.00052654
Equation number 3 : 3.0571e-005
Equation number 4 : -6.832e-005
Equation number 5 : 0
Equation number 6 : 0.015863
Equation number 7 : 0.00021847
Equation number 8 : -0.89417
Equation number 9 : 0
Equation number 10 : -0.2748
Equation number 11 : 0
Equation number 12 : -4.8804
Equation number 13 : -1.006
Equation number 14 : -1.006
Equation number 15 : -1.006
Equation number 16 : 0
Equation number 17 : 0
Equation number 18 : 0
Equation number 19 : -0.0020164
Equation number 20 : 0.30533
Equation number 21 : -0.39946

I would appreciate any help.
Thanks…
changandfernandezlin.mod (3.85 KB)

2

Hi, I only have the standard answer: try providing better starting values or even the analytical steady state solution.

3

The initial values that will make model can find steady state must give the low value of residual.
From your result, let recorrect equation 8, 12, 13, 14, 15. There might be something wrong.
Let try other initial values for that variables in those equation until the residual reach 0.
Good luck!!