Dear all,

I am relative new to dynare, but I need to use if for my master dissertation. I am trying to program a model I found online. The problem is that my initial values are to far away from the steady state values. But I have calculated the steady states by hand and it should be right…

I know that as I am not using exponents, the output should be in level terms, but that should not matter that much for the running of the model should it?

Does anyone see the mistake that I made? Your help would be appreciated.

Attached is the mod.file and the pdf file of the model that I am trying to recreate (pages 1-8).