Hi,

I am doing simple closed economy model with coal firms. I got an error message showing “The steadystate file did not compute the steady state”, and I looked at the Residuals of the static equations which is showing like:

Residuals of the static equations:

Equation number 1 : 0

Equation number 2 : 0

Equation number 3 : 0

Equation number 4 : 0

Equation number 5 : 0

Equation number 6 : 0

Equation number 7 : -0.00012672

Equation number 8 : 0

Equation number 9 : 0

Equation number 10 : 0

Equation number 11 : 0

Equation number 12 : 0

Equation number 13 : 0

Equation number 14 : 0

Equation number 15 : 0

Equation number 16 : 0

Equation number 17 : 0

Equation number 18 : 0

Equation number 19 : 21.5985

Equation number 20 : 0

Equation number 21 : 0

Equation number 22 : 0

Equation number 23 : 0

Equation number 24 : 0

Equation number 25 : 0

Equation number 26 : 0

Equation number 27 : 0

I am really confused about this question. Does the error message appear because I got too big residuals in some equations and I got wrong steady states? If I log-linearize, will the problem be gone?

Many thanks in advance!

yan

coal_model.txt (6.0 KB)