Problem with the computation of the steady state


I am having trouble with the computation of the steady state, even though I have computed it by hand and the steady state values seem plausible. There are residuals, even though small. In other cases where I used the “initval” command Dynare could compute the steady state (even with the existence residuals) but I cannot get it to work with the “steady_state_model”. Any tips would be appreciated.

model2.mod (4.0 KB)
steady_test2.m (1.0 KB)

A steady_state_model requires an exact, correct steady state. If your computations result in residuals, they are inconsistent with the provided equations. Either your steady state computations or the entered model equations are wrong.

Back to the drawing board I suppose. Thank you for the prompt answer.