Solving steady state

Hi all Dynare users,

I currently have a problem on solving the steady state of my DSGE model. The task is to solve a system of nearly 40 nonlinear equations.
I tried the Newton method on Matlab, but didn’t succeed since it requires a good initial guess.
It’d be great if you can suggest some other methods.

Thank you very much.

Try solving it analytically as far as possible. Most of the time you can reduce the system’s size a lot, which makes it easier for solvers as well.

Let me add that analytical computations provide an important sanity check for consistency between the entered equations and your computations.