I am trying to run this model, that worked before adding capital and capital adjustment costs and the government budget constraint.
I wrote the steady-state in the steady_state_model block. I also tried to write it in the “parameters” block, as you write in the Dynare Manual, or as # parameters as suggested in this forum.
I double-checked the steady-state, I linearized again the government budget constraint, but I am still missing something. It has been days since I am stuck at this point. The error is:
Warning: Some of the parameters have no value (y_ss, a_ss, inv_ss, pi_ss, r_ss,
n_ss, w_ss) when using steady. If these parameters are not initialized in a
steadystate file or a steady_state_model-block, Dynare may not be able to solve
STEADY: numerical initial values or parameters incompatible with the following equations
This is the government budget constraint. It has “Residuals: NaN”
I do not know where the error comes from: mistakes in linearizing, mistakes in the steady-state, or mistakes in writing the steady-state in the .mod file. Or numeric values are to be assigned to y_ss, a_ss, inv_ss, pi_ss, r_ss, n_ss, w_ss?
new.mod (3.3 KB)
Thanks to all of you who could help me.