Dear Forum,

I am trying to replicate the Gerali et. al. (2010) paper where I have modified the equations a bit to get marginal costs and standard Calvo type wage and price reset equations. I have also calculated the steady states by hand. I am still unable to successfully run the model and keep getting error *“Impossible to find the steady state (the sum of square residuals of the static equations is 1.0786).”* . If anyone has a clue about what has gone wrong, it will be really helpful.

GNSS2010.mod (24.7 KB)

median_values.txt (675 Bytes)

GERALI_SS.pdf (274.9 KB)