Hi,everyone,thank u for your conscern on my problems:

when I run my model code ,such problem as follows occurs. would someone tell me the reason for this question?

Error using lnsrch1 (line 53)

Some element of Newton direction isn’t finite. Jacobian maybe singular or there is a problem with

initial values

Error in solve1 (line 127)

[x,f,fvec,check]=lnsrch1(xold,fold,g,p,stpmax,func,j1,j2,varargin{:});

Error in dynare_solve (line 128)

[x,info]=solve1(func,x,j1(r(i):r(i+1)-1),j2(r(i):r(i+1)-1),jacobian_flag, bad_cond_flag,

varargin{:});

Error in evaluate_steady_state (line 66)

[ys,check] = dynare_solve([M.fname ‘_static’],…

Error in steady_ (line 54)

[steady_state,params,info] =

evaluate_steady_state(oo_.steady_state,M_,options_,oo_,~options_.steadystate.nocheck);

Error in steady (line 81)

[steady_state,M_.params,info] = steady_(M_,options_,oo_);

Error in sm_2012 (line 285)

steady;

Error in dynare (line 120)

evalin(‘base’,fname) ;

my mod. file is attached and thank you for your time.

sm_2012.mod (3.34 KB)