Residuals 0 but steadystate file did not compute the steady state

auserpallas · 31 October 2025 16:28

Dear all,

After I change the value of imp_tax_f and imp_tax_wh from 1 to 1.0173; This error happens:

The residuals are all 0, but why it can’t work ?

Residuals of the static equations:
Equation number 1: 1 : 0.000000
Equation number 2: 2 : 0.000000
Equation number 3: 3 : 0.000000
Equation number 4: 4 : 0.000000
Equation number 5: 5 : 0.000000
Equation number 6: 6 : 0.000000
Equation number 7: 7 : 0.000000
Equation number 8: 8 : 0.000000
Equation number 9: 9 : 0.000000
Equation number 10: Lh : 0.000000
Equation number 11: Lf : 0.000000
Equation number 12: Lw : 0.000000
Equation number 13: 13 : 0.000000
Equation number 14: 14 : 0.000000
Equation number 15: 15 : 0.000000
Equation number 16: 16 : 0.000000
Equation number 17: 17 : 0.000000
Equation number 18: 18 : 0.000000
Equation number 19: 19 : 0.000000
Equation number 20: 20 : 0.000000
Equation number 21: 21 : 0.000000
Equation number 22: Lambdah : 0.000000
Equation number 23: Lambdaf : 0.000000
Equation number 24: Lambdaw : 0.000000
Equation number 25: ratiohb : 0.000000
Equation number 26: ratiofb : 0.000000
Equation number 27: ratiowb : 0.000000
Equation number 28: 28 : 0.000000
Equation number 29: 29 : 0.000000
Equation number 30: 30 : 0.000000
Equation number 31: ratiohg : 0.000000
Equation number 32: ratiofg : 0.000000
Equation number 33: ratiowg : 0.000000
Equation number 34: Qhb : 0.000000
Equation number 35: Qfb : 0.000000
Equation number 36: Qwb : 0.000000
Equation number 37: Qhg : 0.000000
Equation number 38: Qfg : 0.000000
Equation number 39: Qwg : 0.000000
Equation number 40: 40 : 0.000000
Equation number 41: 41 : 0.000000
Equation number 42: 42 : 0.000000
Equation number 43: 43 : 0.000000
Equation number 44: 44 : 0.000000
Equation number 45: 45 : 0.000000
Equation number 46: 46 : 0.000000
Equation number 47: 47 : 0.000000
Equation number 48: 48 : 0.000000
Equation number 49: 49 : 0.000000
Equation number 50: 50 : 0.000000
Equation number 51: 51 : 0.000000
Equation number 52: 52 : 0.000000
Equation number 53: 53 : 0.000000
Equation number 54: 54 : 0.000000
Equation number 55: 55 : 0.000000
Equation number 56: 56 : 0.000000
Equation number 57: 57 : 0.000000
Equation number 58: 58 : 0.000000
Equation number 59: 59 : 0.000000
Equation number 60: 60 : 0.000000
Equation number 61: Ih : 0.000000
Equation number 62: If : 0.000000
Equation number 63: Iw : 0.000000
Equation number 64: FFhb : 0.000000
Equation number 65: FFfb : 0.000000
Equation number 66: FFwb : 0.000000
Equation number 67: KKhb : 0.000000
Equation number 68: KKfb : 0.000000
Equation number 69: KKwb : 0.000000
Equation number 70: pihomehb : 0.000000
Equation number 71: piforfb : 0.000000
Equation number 72: piwrdwb : 0.000000
Equation number 73: phomehb : 0.000000
Equation number 74: pforfb : 0.000000
Equation number 75: pwrdwb : 0.000000
Equation number 76: FFhg : 0.000000
Equation number 77: FFfg : 0.000000
Equation number 78: FFwg : 0.000000
Equation number 79: KKhg : 0.000000
Equation number 80: KKfg : 0.000000
Equation number 81: KKwg : 0.000000
Equation number 82: pihomehg : 0.000000
Equation number 83: piforfg : 0.000000
Equation number 84: piwrdwg : 0.000000
Equation number 85: phomehg : 0.000000
Equation number 86: pforfg : 0.000000
Equation number 87: pwrdwg : 0.000000
Equation number 88: FFh_forb : 0.000000
Equation number 89: FFh_forwb : 0.000000
Equation number 90: FFf_forb : 0.000000
Equation number 91: FFf_forwb : 0.000000
Equation number 92: FFf_forwhb : 0.000000
Equation number 93: FFf_forwfb : 0.000000
Equation number 94: KKh_forb : 0.000000
Equation number 95: KKh_forwb : 0.000000
Equation number 96: KKf_forb : 0.000000
Equation number 97: KKf_forwb : 0.000000
Equation number 98: KKf_forwhb : 0.000000
Equation number 99: KKf_forwfb : 0.000000
Equation number 100: pihomefb : 0.000000
Equation number 101: pihomewb : 0.000000
Equation number 102: piforhb : 0.000000
Equation number 103: piforwb : 0.000000
Equation number 104: piwrdhb : 0.000000
Equation number 105: piwrdfb : 0.000000
Equation number 106: phomefb : 0.000000
Equation number 107: phomewb : 0.000000
Equation number 108: pforhb : 0.000000
Equation number 109: pforwb : 0.000000
Equation number 110: pwrdhb : 0.000000
Equation number 111: pwrdfb : 0.000000
Equation number 112: FFh_forg : 0.000000
Equation number 113: FFh_forwg : 0.000000
Equation number 114: FFf_forg : 0.000000
Equation number 115: FFf_forwg : 0.000000
Equation number 116: FFf_forwhg : 0.000000
Equation number 117: FFf_forwfg : 0.000000
Equation number 118: KKh_forg : 0.000000
Equation number 119: KKh_forwg : 0.000000
Equation number 120: KKf_forg : 0.000000
Equation number 121: KKf_forwg : 0.000000
Equation number 122: KKf_forwhg : 0.000000
Equation number 123: KKf_forwfg : 0.000000
Equation number 124: pihomefg : 0.000000
Equation number 125: pihomewg : 0.000000
Equation number 126: piforhg : 0.000000
Equation number 127: piforwg : 0.000000
Equation number 128: piwrdhg : 0.000000
Equation number 129: piwrdfg : 0.000000
Equation number 130: phomefg : 0.000000
Equation number 131: phomewg : 0.000000
Equation number 132: pforhg : 0.000000
Equation number 133: pforwg : 0.000000
Equation number 134: pwrdhg : 0.000000
Equation number 135: pwrdfg : 0.000000
Equation number 136: Ytothb : 0.000000
Equation number 137: Ytotfb : 0.000000
Equation number 138: Ytotwb : 0.000000
Equation number 139: Ytothg : 0.000000
Equation number 140: Ytotfg : 0.000000
Equation number 141: Ytotwg : 0.000000
Equation number 142: Ytoth : 0.000000
Equation number 143: Ytotf : 0.000000
Equation number 144: Ytotw : 0.000000
Equation number 145: rkhb : 0.000000
Equation number 146: rkfb : 0.000000
Equation number 147: rkwb : 0.000000
Equation number 148: rkhg : 0.000000
Equation number 149: rkfg : 0.000000
Equation number 150: rkwg : 0.000000
Equation number 151: whb : 0.000000
Equation number 152: wfb : 0.000000
Equation number 153: wwb : 0.000000
Equation number 154: whg : 0.000000
Equation number 155: wfg : 0.000000
Equation number 156: wwg : 0.000000
Equation number 157: abh : 0.000000
Equation number 158: abf : 0.000000
Equation number 159: abw : 0.000000
Equation number 160: Khb : 0.000000
Equation number 161: Kfb : 0.000000
Equation number 162: Kwb : 0.000000
Equation number 163: Khg : 0.000000
Equation number 164: Kfg : 0.000000
Equation number 165: Kwg : 0.000000
Equation number 166: rh : 0.000000
Equation number 167: rf : 0.000000
Equation number 168: rw : 0.000000
Equation number 169: 169 : 0.000000
Equation number 170: 170 : 0.000000
Equation number 171: 171 : 0.000000
Equation number 172: 172 : 0.000000
Equation number 173: 173 : 0.000000
Equation number 174: 174 : 0.000000
Equation number 175: dhomehb : 0.000000
Equation number 176: dforhb : 0.000000
Equation number 177: dforhbw : 0.000000
Equation number 178: dhomefb : 0.000000
Equation number 179: dforfb : 0.000000
Equation number 180: dforfbw : 0.000000
Equation number 181: dwb : 0.000000
Equation number 182: dwb2 : 0.000000
Equation number 183: dwb3 : 0.000000
Equation number 184: Ihb : 0.000000
Equation number 185: Ifb : 0.000000
Equation number 186: Iwb : 0.000000
Equation number 187: dhomehg : 0.000000
Equation number 188: dhomefg : 0.000000
Equation number 189: dforhgw : 0.000000
Equation number 190: dforhg : 0.000000
Equation number 191: dforfg : 0.000000
Equation number 192: dforfgw : 0.000000
Equation number 193: dwg : 0.000000
Equation number 194: dwg2 : 0.000000
Equation number 195: dwg3 : 0.000000
Equation number 196: 196 : 0.000000
Equation number 197: 197 : 0.000000
Equation number 198: 198 : 0.000000
Equation number 199: 199 : 0.000000
Equation number 200: 200 : 0.000000
Equation number 201: 201 : 0.000000
Equation number 202: Wh : 0.000000
Equation number 203: Wf : 0.000000
Equation number 204: Ww : 0.000000
Equation number 205: Wtot : 0.000000
Equation number 206: eh : 0.000000
Equation number 207: ef : 0.000000
Equation number 208: ew : 0.000000
Equation number 209: xh : 0.000000
Equation number 210: Lossf : 0.000000
Equation number 211: Lossh : 0.000000
Equation number 212: Lossw : 0.000000
Equation number 213: et : 0.000000
Equation number 214: ECh : 0.000000
Equation number 215: ECf : 0.000000
Equation number 216: ECw : 0.000000
Equation number 217: Ahb : 0.000000
Equation number 218: Afb : 0.000000
Equation number 219: Awb : 0.000000
Equation number 220: RRh : 0.000000
Equation number 221: RRf : 0.000000
Equation number 222: RRw : 0.000000
Equation number 223: Ph : 0.000000
Equation number 224: Pf : 0.000000
Equation number 225: Pw : 0.000000
Equation number 226: 226 : 0.000000
Equation number 227: 227 : 0.000000
Equation number 228: 228 : 0.000000
Equation number 229: 229 : 0.000000
Equation number 230: 230 : 0.000000
Equation number 231: 231 : 0.000000
Equation number 232: yh_o : 0.000000
Equation number 233: yf_o : 0.000000
Equation number 234: yw_o : 0.000000
Equation number 235: ch_o : 0.000000
Equation number 236: cf_o : 0.000000
Equation number 237: cw_o : 0.000000
Equation number 238: pih_o : 0.000000
Equation number 239: pif_o : 0.000000
Equation number 240: piw_o : 0.000000
Equation number 241: x_hh : 0.000000
Equation number 242: x_ff : 0.000000
Equation number 243: x_ww : 0.000000
Equation number 244: rh2_o : 0.000000
Equation number 245: rf2_o : 0.000000
Equation number 246: rw2_o : 0.000000
Equation number 247: Y_growth : 0.000000
Equation number 248: Y_growtf : 0.000000
Equation number 249: Y_growtw : 0.000000
Equation number 250: C_growth : 0.000000
Equation number 251: C_growtf : 0.000000
Equation number 252: C_growtw : 0.000000
Equation number 253: pih_growth : 0.000000
Equation number 254: pif_growth : 0.000000
Equation number 255: piw_growth : 0.000000
Equation number 256: rh2_growth : 0.000000
Equation number 257: rf2_growth : 0.000000
Equation number 258: rw2_growth : 0.000000
Equation number 259: xhh_growth : 0.000000
Equation number 260: xff_growth : 0.000000
Equation number 261: xww_growth : 0.000000

Error using print_info (line 33)
The steadystate file did not compute the steady state
Error in steady (line 143)
print_info(info,options_.noprint, options_);
Error in MP_final_notax.driver (line 5683)
steady;
Error in dynare (line 308)
evalin(‘base’,[fname ‘.driver’]);

ss_MP_notax.m (33.1 KB)

param_MP_notax.m (5.1 KB)

MP_final_notax_steadystate.m (2.4 KB)

MP_final_notax.mod (40.8 KB)

jpfeifer · 1 November 2025 00:09

That is because your steady state file fails on the first try. If you put resid(non_zero) before steady, you will see

Equation number  96: KKf_forb   :       0.001563
Equation number  98: KKf_forwhb :       0.000822
Equation number 108: pforhb     :      -0.007324
Equation number 110: pwrdhb     :      -0.007333
Equation number 179: dforfb     :       0.042632
Equation number 182: dwb2       :       0.042687

However, if you use the output of the steady state file as the input value for a second call, you will find a solution. My hunch is that this is because of different starting values in your numerical solver within the steady state file. That is what causes the strange behavior. To display the residuals, Dynare will call the steady state file a second time, which then returns zero residuals. But the original call to steady failed.

auserpallas · 1 November 2025 06:19

Professor, then do I need to change the initial parameters, or can I use the values output by the steady state file? If it’s the latter, how should I modify my code?

auserpallas · 2 November 2025 16:19

Thank you, Professor! When tariffs are imposed, the steady-state values of inflation, exchange rates, and market shares must be modified to reflect these changes. Accordingly, after revising the equations in the ss_.file, my .mod file now runs successfully.