I am a new user of dynare and the version is 4.3.0. I just want to replicate a paper, but fail to finish it because of the problem with steady state. I gave the initial value by computing myself according to the instructions in the paper. I think the residual is close enough but still encounter the error. I also checked the model and I think it should be the same as the one in the paper. Do I need to try to give more exact value or I can try other ways to solve the steady state? (I also try to use “solve algo” but with no success) could someone help me fix it? Thanks a lot
SOLVE: maxit has been reached
Residuals of the static equations:
Equation number 1 : -0.0005221
Equation number 2 : 0.0020082
Equation number 3 : 7.0409e-006
Equation number 4 : -0.0028293
Equation number 5 : 0
Equation number 6 : -0.0019964
Equation number 7 : 3.2e-005
Equation number 8 : -0.00014589
Equation number 9 : 9.1049e-006
Equation number 10 : 4.0672e-005
Equation number 11 : 1.4923e-005
Equation number 12 : 0
Equation number 13 : 7.2e-007
Equation number 14 : 0
Equation number 15 : -0.00010011
Equation number 16 : -6.3855e-006
Equation number 17 : -0.00015744
??? 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
Error in ==> steady at 92
print_info(info,options_.noprint);
Error in ==> shi at 203
steady;
Error in ==> dynare at 120
evalin(‘base’,fname) ;
My Program:
var c k i l w r cw ce lamda q pb A phi tau se b be;
varexo zA zphi;
parameters alpha beta rho pai u0 h0 yita sigma Astar deltaA B phistar deltaphi sita g;
alpha = 0.36;
beta = 0.992;
rho = 2;
pai = 0.06;
u0 = 44.801;
h0 = 17.005;
yita = 1.5;
sigma = 0.981;
Astar = 1;
deltaA = 0.95;
B = 2.0204;
phistar = 0.276;
deltaphi = 0.9;
sita = 0.276;
g = 0.1928;
model;
yitah0l^(yita-1)=cw^(-rho)w;
u0ce^(-rho)=cw^(-rho)(1+lamda);
q-1=(1-sitaq)lamda;
se=(1-sita)i+(1-phi)sigmak(-1);
g=tau+pbb-b(-1);
(r+phisigmaq)k(-1)+(b(-1)-pbbe)-tau=ce+(1-sitaq)i; /2.4/
c=paice+(1-pai)cw;
(r+sigmaq)k(-1)-qk+(1-pai)wl+(q-1)paii+(b(-1)-pbb)-tau=c; /2.8/
q=beta(cw(+1)/cw)^(-rho)(r(+1)+sigmaq(+1)+pailamda(+1)(r(+1)+phi(+1)sigmaq(+1)));
pb=beta*(cw(+1)/cw)^(-rho)(1+pailamda(+1));
c+paii+g=Ak(-1)^alpha*((1-pai)l)^(1-alpha);
b=B;
k=sigmak(-1)+paii;
log(A)=(1-deltaA)log(Astar)+deltaAlog(A(-1))+zA;
-log(1/phi-1)=-(1-deltaphi)log(1/phistar-1)-deltaphilog(1/phi(-1)-1)+zphi;
r=Aalphak(-1)^(alpha-1)((1-pai)l)^(1-alpha);
w=A(1-alpha)k(-1)^alpha((1-pai)*l)^(-alpha);
end;
initval;
c=0.6079;
k=14.22288;
i=4.5039;
l=0.265957;
w=2.7414;
r=0.0271;
cw=0.4565;
ce=2.9793;
lamda=0.0514;
q=1.0367;
pb=0.9951;
A=1;
phi=0.2758;
tau=0.2027;
se=13.3625;
b=2.0204;
be=0;
zA=0;
zphi=0;
end;
resid(1);
steady;
/solve algo=1;/
/check;/
shocks;
var zphi;
periods 1:1;
values -0.8019;
end;
simul(periods=100);
shi.mod (1.46 KB)