Solve the steady-state by f-solve

Steady state
1

I solve the steady-state by f-solve. But I use the different parameter phi in the fsolve file and the dynare mod file.(fsolve file: phi = 0.5, dynare mod file: phi = 0.1)
And I run the dynare model, it works!
But when I change the file to make the parameter phi is the same in the fsolve file and the dynare mod file. It doesn’t work, the residual isn’t zero.
It shows the error:
Residuals of the static equations:

Equation number 1 : -0.00038423 : 1
Equation number 2 : -2.2177e-05 : 2
Equation number 3 : 3.9297e-05 : nt
Equation number 4 : 8.028e-05 : xt
Equation number 5 : 0.00032308 : ft
Equation number 6 : 0.00040117 : netyt
Equation number 7 : 7.0461e-05 : dght
Equation number 8 : 0.019046 : dgnt
Equation number 9 : -0.00029876 : dgkt
Equation number 10 : -4.1708e-05 : fkt
Equation number 11 : 8.9018e-05 : fnt
Equation number 12 : 0.0004347 : kt
Equation number 13 : -4.5292e-05 : 13
Equation number 14 : 4.3156e-05 : 14
Equation number 15 : 0.00051545 : 15
Equation number 16 : 7.4175e-05 : 16
Equation number 17 : -7.6524e-06 : 17
Equation number 18 : -0.00024529 : hnt
Equation number 19 : -3.243e-05 : 19
Equation number 20 : 5.0704e-05 : ht
Equation number 21 : 0 : 21
Equation number 22 : 0 : 22
Equation number 23 : -0.00032553 : mcwt
Equation number 24 : -0.0025327 : mohnt

Error using print_info
Impossible to find the steady state (the sum of square residuals of the static equations is
0.0004). 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
Is there any problem in my model ?
Here is my fsolve file and the dynare mod file, thanks!
f_Yashiv_2022_hours_test.m (1.9 KB)
Yashiv_2022_noexp_rigidhours_test.mod (6.1 KB)

2

That implies the model you solve in your steady state file and the one actually entered in the mod-file are not the same.

3

Thanks for your rapid reply!!
I’ve checked my model is the same in my steady state file and mod-file.
And the strange thing is my Taylor Rule makes sure my pit_ss(inflation steady-state level) is1.

it/it_ss = ((it(-1)/it_ss)^rhor*(pit^rpi*((netyt/netyt_ss)^ry))^(1-rhor))*mpt;

But in the successful example with the different parameters I mentioned, Dynare showed me that pit_ss is 1.03.
If my model is the same in my steady state file and mod-file, maybe some of my equations are wrong?

4

I would need to see the files.

5

Yashiv_2022_noexp_rigidhours.mod (6.1 KB)
f_Yashiv_2022_hours.m (1.8 KB)
Here are my mod-file and f-solve file.

6

You should put
resid
before
steady
to see that your initial values result in problems in various equations.

7

Thanks! After adding resid before steady, it shows that:
Residuals of the static equations:

Equation number 1 : 0 : 1
Equation number 2 : 0 : 2
Equation number 3 : 0 : nt
Equation number 4 : 0.77643 : xt
Equation number 5 : 0 : ft
Equation number 6 : -0.032938 : netyt
Equation number 7 : 0.54179 : dght
Equation number 8 : -0.045738 : dgnt
Equation number 9 : 0.00047339 : dgkt
Equation number 10 : 0 : fkt
Equation number 11 : 0 : fnt
Equation number 12 : 0 : kt
Equation number 13 : 0 : 13
Equation number 14 : 0 : 14
Equation number 15 : 0 : 15
Equation number 16 : 0 : 16
Equation number 17 : 0 : 17
Equation number 18 : 0.0050839 : hnt
Equation number 19 : 0 : 19
Equation number 20 : 0 : ht
Equation number 21 : 0 : 21
Equation number 22 : 0 : 22
Equation number 23 : 0 : mcwt

It seems that I have something wrong in my f-solve process, but I put the same equation in these two files. Maybe there is something wrong in my mathematical derivation?

8

Yes, that may well be.