I am struggling with the Ramsey Optimal Policy in my model. Following your mod file example (Ramsey_example), I set one instrument (omega) with one missing equation. I wrote down the steady_model block as suggested, but in the end the routine returned me the following error:

Ramsey: The maximum number of iterations has been reached. Try increasing maxit.

I am a bit puzzled, as the initval of my instrument is equal to zero, so I think that the conditional steady state should not be the problem.
Could you please help me out?

I am really sorry but I am not very used to this Ramsey procedure, what would you suggest in order to solve my problem?
If I got the idea, the problem is in my steady state. Am I wrong?

The problem is that your steady state file does not work for arbitrary values of omega. It must work the following way: given any feasible values for omega, return the steady state for all other variables.

Thanks again Professor. One last question. I modified the steady state as you suggested, but the problem persists. When i run the model without ramsey, it works smoothly, but if I add the Ramsey policy lines, the following error appears again:

Ramsey: The maximum number of iterations has been reached. Try increasing maxit.

I’ve run into the same error - ‘‘Ramsey: The maximum number of iterations has been reached. Try increasing maxit’’ - in a model with two goods: durables and nondurables when I use an analytical expression of the loss function. The model works fine otherwise with a Taylor rule. I’d really appreciate your advice on how to potentially fix this.