Hi

I’m trying to make this NKM run, but I’m stuck. Maybe someone knows whats the problem. I think that one of the steady states is missing. I’m not sure if I need to give an steady state value for each variable.This is a modification of the Christiano Eichenbaum Evans (2005) paper (attached)

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

Starting Dynare (version 4.1.3).

Starting preprocessing of the model file …

Found 26 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

Warning: Divide by zero.

In Final_static at 20

In dynare_solve at 70

In steady_ at 124

In steady at 52

In Final at 248

In dynare at 132

Warning: Divide by zero.

In Final_static at 25

In dynare_solve at 70

In steady_ at 124

In steady at 52

In Final at 248

In dynare at 132

Warning: Divide by zero.

In Final_static at 27

In dynare_solve at 70

In steady_ at 124

In steady at 52

In Final at 248

In dynare at 132

Warning: Divide by zero.

In Final_static at 29

In dynare_solve at 70

In steady_ at 124

In steady at 52

In Final at 248

In dynare at 132

Warning: Divide by zero.

In Final_static at 29

In dynare_solve at 70

In steady_ at 124

In steady at 52

In Final at 248

In dynare at 132

Warning: Divide by zero.

In Final_static at 116

In dynare_solve at 70

In steady_ at 124

In steady at 52

In Final at 248

In dynare at 132

Warning: Divide by zero.

In Final_static at 116

In dynare_solve at 70

In steady_ at 124

In steady at 52

In Final at 248

In dynare at 132

STEADY: numerical initial values incompatible with the following equations

1 16 17

I attached the *.mod file

Thanks

Sebastián

papermacro.pdf (408 KB)

Final.mod (2.3 KB)