Dear all,

I wrote a dynare code for a DSGE model including Real Estate sector.

But the processing result is that

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Local state space iteration (second order).

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

[mex] Quasi Monte-Carlo sequence (Sobol).

[mex] Markov Switching SBVAR.

Starting Dynare (version 4.4.2).

Starting preprocessing of the model file …

Found 47 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1
- order 2

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

STEADY-STATE RESULTS:

ih 0

ihR 0

ihF 0

h 0

hF 0

hR 0

hRO 0

hRR 0

n 0

nO 0

nR 0

miu_O 0

miu_F 0

miu_H 0

miu_R 0

c 0

cO 0

cR 0

y 0

kF 0

iF 0

kH 0

iH 0

b 0

s 0

rFK 0

qL 0

rH 0

rHFK 0

rRR 0

qH 0

w 0

R 0

ggamma 0

Xi 0

v 0

fiH 0

lambdaZ 0

lambdaA 0

epsilonS 0

lambdaI 0

DLogY 0.0281454

DLogIHR 0.0281454

DLogIHF 0.0281454

DLogIF 0.0281454

DLogQH -0.0174283

DLogS 0.0281454

??? Error using ==> print_info at 51

The Jacobian matrix evaluated at the steady state contains elements that are not real or are

infinite

Error in ==> check at 76

print_info(info, 0, options);

Error in ==> para_est at 412

oo_.dr.eigval = check(M_,options_,oo_);

Error in ==> dynare at 180

evalin(‘base’,fname) ;

I tried to adjust parameter value but it got the same result.

Can you fix it?

para_est.mod (13.5 KB)