Problems with steady state

Hello!

I’m working on my final paper, and I have some difficulties, and I ask for your help, because I’m relatively a new user at dynare, I used Matlab before.

I’m stuck with my recent model, it says: “Impossible to find the steady state. 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”.

I’m sure, many of you have met this, but I just can’t figure out the problem, and I can’t really interpret the Errors. Can you help me solve the problem? I would really appreciate it, thank you for your help. :slight_smile:
matlab18.mod (1.08 KB)

Dear all,

I am running the Gertler and Karadi model11, it works well for a closed economy, however when I extend it for an open economy and include a couple of equations more. It seems there is a problem with the Jacobian matrix and I got this message:

Error using print_info (line 51)
The Jacobian matrix evaluated at the steady state contains elements that are not real or are infinite

Error in check (line 76)
print_info(info, 0, options);

Error in GKOPEN1feb9 (line 490)
oo_.dr.eigval = check(M_,options_,oo_);

Error in dynare (line 180)
evalin(‘base’,fname) ;

Could you help me with some advice, I have been looking in the M_.params but I can see any parameter with NAN. I have read a couple of cases in the forum, but I cannot figure out which equation is making a mess in my model. Any help you can give will be really grateful.

Best,
alfaomega
GKOPEN1feb9.mod (17.3 KB)

Never put check before steady. Running model_diagnostics first yields

[quote]MODEL_DIAGNOSTICS: The following endogenous variables aren’t present at the current period in the model:
ex [/quote]

Before running the model, make sure your parameters and model-local variables (the ones with the pound operator )are well defined. For this purpose, evaluate them in Matlab e.g. using F9. You will see that for example in

# PHIXss = (-B_Sss)^etapsis;
B_Sss is positive, meaning you take the root of a negative number, resulting in complex values.