Hi all;model1.mod (3.0 KB)

I’ m trying to run a simplified version of Iacovello & Neri (2010). Model have patient and impatient households which latter one has collateral housing constraint. Codes and technical appendices of the paper are very useful for me. But when I run my code, Dynare giving the error which “Impossible to find the steady state. Either the model doesn’t have a steady state, there are an infinity of steady states, or the guess values are too far from the solution.”

Here are the residuals of the equations:

Equation number 1 : 0

Equation number 2 : 0

Equation number 3 : 0

Equation number 4 : -1.516e-005

Equation number 5 : -1.516e-005

Equation number 6 : 0.21095

Equation number 7 : -0.012876

Equation number 8 : 0.005219

Equation number 9 : -0.4877

Equation number 10 : -0.0503

Equation number 11 : 0.49769

Equation number 12 : 0

Equation number 13 : 0.21114

Equation number 14 : 8.5365e-005

Equation number 15 : -0.0002773

Equation number 16 : 0

Equation number 17 : 2.7342e-007

Equation number 18 : 0

Equation number 19 : 0

Equation number 20 : 0

Equation number 21 : 0

They are very very small, but doesn’ t converge. I changed initvalues or calibrations many times, but doesn’t work. I’m grateful for any help.

Also, maybe writing an external steady state Matlab file will be solution, but I don’t know how I’ll do that exactly.

Best.