On running the dynare code that comes with this example, dynare gives the following error:

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Local state space iteration (second order).

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

[mex] Quasi Monte-Carlo sequence (Sobol).

[mex] Markov Switching SBVAR.

Starting Dynare (version 4.4.2).

Starting preprocessing of the model file …

WARNING: fs2000ns.mod:49.1-27: ‘‘unit_root_vars’’ is now obsolete; use the ‘‘diffuse_filter’’ option of ‘‘estimation’’ instead

Substitution of endo leads >= 2: added 1 auxiliary variables and equations.

Found 15 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1
- order 2

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

Warning: Some of the parameters have no value (alp, bet, gam, mst, rho, psi, del) when using steady.

If these parameters are not initialized in a steadystate file, Dynare may not be able to solve the

model…

In test_for_deep_parameters_calibration at 46

In steady at 33

In fs2000ns at 180

In dynare at 180

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 : 0

Equation number 12 : NaN

Equation number 13 : NaN

Equation number 14 : NaN

Error using print_info (line 80)

The steady state contains NaN or Inf

Error in resid (line 112)

print_info(info,options_.noprint, options_)

Error in steady (line 90)

resid;

Error in fs2000ns (line 180)

steady;

Error in dynare (line 180)

evalin(‘base’,fname) ;

Can anyone please explain why?

I observe that in the user guide just after the initval block there is no steady option but the code file that comes with the example has that option. Upon removing the option the code works fine but it takes too long to estimate the model. Was that the main problem? i.e. the steady option?

Secondly, we have an external steady state program with the name fs2000ns_steadystate. What I don’t understand is the fact that nowhere in the dynare code we mentioned fs2000ns_steadystate, so does dynare automatically detects this file or are we suppose to run the external steady state program separately?

Any help regarding the above issues will be highly appreciated!!