Problems in the replication of Jaimovich and Floetotto 2008 appendix

General DSGE Modeling Replication Attempts
1

I am trying to replicate Jaimovich and Floetotto 2008 -Firm dynamics, markup variations, and the business cycle, appendix… But i am getting this error:
Impossible to find the steady state (the sum of square residuals of the static equations is 0.0000). 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
rep1.mod (3.1 KB)

I have tried to check all the equations and steady state but couldn’t find the mistake. Can anyone please help?

Kind regards,
Awanish

2

Your model tells you that

mu=1/tau;

but that is inconsistent with your parameters as

nbar=((tau-omega)*(mubar-1))/((1-omega)*(mubar*tau-1));

would have a 0 in the last term.