(exp(pi))^(1-epsilon) = (1-theta) * (exp(pistar))^(1-epsilon) + theta; this is the number 17 equation and dynare reports Equation number 17 : 2.418016042065542e+23, but we set up the initial value of pi = log(1), pistar = log(1), the residual should be 0. I wonder why the residual is so large.
Without the file it is impossible to tell.
Thank you, Professor. I just thought it was only caused by this equation. Should it be caused by the steady-state values (initial values) of the whole model?
Again, without seeing the files it is impossible to tell. It could be anything.
Thank you, professor. we check the steady state solution for the model, and then correct the steady state solution, the problem is solved.