# RBC with distortionary Taxes

**URL:** https://forum.dynare.org/t/rbc-with-distortionary-taxes/6209
**Category:** Dynare help (legacy posts)
**Created:** [14 May 2017 09:36 UTC](https://forum.dynare.org/t/rbc-with-distortionary-taxes/6209 "2017-05-14T09:36:33Z")
**Posts on this page:** 6
**Page:** 1

<div class="post-metadata">

### Author: ![MscK](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/6f9a4e/32.png) [@MscK](https://forum.dynare.org/u/MscK)
#### Post date: [14 May 2017 09:36 UTC](https://forum.dynare.org/t/rbc-with-distortionary-taxes/6209/1 "2017-05-14T09:36:33Z")

</div>

Dear all,

I am trying to expand my model with distortionary taxes. Everything runs up until that point. So I think my mistake is somewhere in the tax-process. Does anyone see my mistake?

Thank you!  
[sims2distax.mod](https://forum.dynare.org/uploads/default/original/2X/d/d53cbc319dbb16c0d29e3fe872e6b9c3bf65b5a2.mod) (1.5 KB)

---

<div class="post-metadata">

### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [14 May 2017 10:22 UTC](https://forum.dynare.org/t/rbc-with-distortionary-taxes/6209/2 "2017-05-14T10:22:57Z")

</div>

I can run your model. What is the problem you experience?

---

<div class="post-metadata">

### Author: ![MscK](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/6f9a4e/32.png) [@MscK](https://forum.dynare.org/u/MscK)
#### Post date: [14 May 2017 10:29 UTC](https://forum.dynare.org/t/rbc-with-distortionary-taxes/6209/3 "2017-05-14T10:29:06Z")

</div>

That’s interesting. If I run the model, I get the following error:

Error using print\_info (line 74)  
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  
Error in steady (line 92)  
print\_info(info,options\_.noprint, options\_);  
Error in sims2distax (line 228)  
steady;  
Error in dynare (line 180)  
evalin(‘base’,fname) ;

---

<div class="post-metadata">

### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [14 May 2017 10:42 UTC](https://forum.dynare.org/t/rbc-with-distortionary-taxes/6209/4 "2017-05-14T10:42:49Z")

</div>

Please try the unstable version of Dynare.

---

<div class="post-metadata">

### Author: ![MscK](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/6f9a4e/32.png) [@MscK](https://forum.dynare.org/u/MscK)
#### Post date: [14 May 2017 11:15 UTC](https://forum.dynare.org/t/rbc-with-distortionary-taxes/6209/5 "2017-05-14T11:15:28Z")

</div>

The unstable version of dynare gives me the same error.

---

<div class="post-metadata">

### Author: ![MscK](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/6f9a4e/32.png) [@MscK](https://forum.dynare.org/u/MscK)
#### Post date: [14 May 2017 18:25 UTC](https://forum.dynare.org/t/rbc-with-distortionary-taxes/6209/6 "2017-05-14T18:25:35Z")

</div>

It’s running with Dynare 4.3.3. Thank you!