There are many posts on the forums involving this problem, and looking through some of them will probably be useful to see the mistakes others made and compare against your own. See for example the recent post What are common dynare errors? for an explanation of the technical reason why NaN or Inf appears in your steady state.
A few general ideas for troubleshooting:
- After running your .mod file, use the “resid” command in MATLAB’s command window. This will show you which equations are problematic.
- The steady state values being used to produce the residuals of the static equations are found in “oo_.steady_state” in declaration order. Have a look at these steady state values and make sure they look reasonable
- A very typical reason for undefined steady states on this forum seems to be taking the log of zero. Certainly your code is trying to do that: you specify the steady state values of v, s, and mu to be zero; the final three equations of your model block then try to take the natural log of 0, which evaluates to -Inf and the static equations are then of the form ln(0) - \rho*ln(0)= -Inf - (-Inf)=NaN
Good luck.