Dear all,
I’m trying to work out the Ramsey steady state and FOCs in a model with 7 equations. I get the following error message:
STEADY: numerical initial values incompatible with the following equations
8
Is equation 8 the first Ramsey FOC? With respect to which variable? Are they ordered alphabetically?
See the mod-file in attachment.
Thanks in advance,
Vivien
soe_ramsey_0111.mod (1.79 KB)
Hi,
The problem is that you initialize variable “g” to zero, and you take the log of it in the planner objective.
Fixing this removes this error message, but the solver is still not converging. You have to figure why.
Best,
Alright - thanks for your help!
Vivien