Residuals of static equation nonzero

Steady state
1

Hello everybody,

I am trying to run this model in dynare but every time I try to run it it gives the following error message:

Residuals of the static equations:

Equation number 1 : -1.1748
Equation number 2 : 0.16585
Equation number 3 : 7.583
Equation number 4 : -1.175
Equation number 5 : 0
Equation number 6 : 0.84058
Equation number 7 : -3.5094e-06
Equation number 8 : -9.1908
Equation number 9 : 0.001
Equation number 10 : 0.97
Equation number 11 : -0.8924
Equation number 12 : NaN

Residuals of the static equations:

Equation number 1 : NaN
Equation number 2 : NaN
Equation number 3 : NaN
Equation number 4 : NaN
Equation number 5 : NaN
Equation number 6 : NaN
Equation number 7 : NaN
Equation number 8 : NaN
Equation number 9 : NaN
Equation number 10 : NaN
Equation number 11 : NaN
Equation number 12 : NaN

Error using print_info (line 90)
The steady state contains NaN or Inf

Error in steady (line 104)
print_info(info,options_.noprint, options_);

Error in Anna (line 192)
steady;

Error in dynare (line 223)
evalin(‘base’,fname) ;

I am new to dynare. Could you please help.

Thanks,

Ada

I have attached the code.Anna.mod (1.2 KB)

2

Use

mu = 0.97;
L = 1.255619;
W = 8.11658;
d = 0.1675;
D = 0.001;
s = 0.16585;
c = 0.834;
K = 6.634;
Y = 1;
theta=1;
end;

resid(1);
steady(solve_algo=2,maxit=1000);

to get

STEADY-STATE RESULTS:

c     		 0.0676942
d     		 0.240622
L     		 0.0449275
D     		 -0.0876108
s     		 0.16585
W     		 3.48282
Y     		 0.233544
K     		 6.634
R_s   		 0.915533
R_d   		 0.995145
mu    		 0.955339
theta 		 1

After that, check the timing of your equations. Capital is not consistently predetermined.

3

Hello,

Thanks so much for the help.

How can I consistently predetermine capital since I know have an error that the Blachard Kahn conditions are not satisfied.

Thanks,

Ada

4

Usually, capital does not show up with a contemporaneous timing in the production function for example.