# Spurious Convergence and errors

I’m running a model with Dynare, but only getting this message

I think my initial value is wrong, but don’t know how to guess it correctly.
Could anyone take a look at my code and give me some advice, please?

## BTW, I don’t know the message of ‘Spurious Convergence’. What does this mean?

Starting Dynare (version 4.1.0).
Starting preprocessing of the model file …
Found 13 equation(s).
Evaluating expressions…done
Computing static model derivatives:

• order 1
Computing dynamic model derivatives:
• order 1
• order 2
Processing outputs …done
Preprocessing completed.
Starting MATLAB/Octave computing.

Residual for equation number 1 is equal to 0
Residual for equation number 2 is equal to 3.4213
Residual for equation number 3 is equal to -0.043418
Residual for equation number 4 is equal to -0.78368
Residual for equation number 5 is equal to 0.14247
Residual for equation number 6 is equal to -0.7355
Residual for equation number 7 is equal to 0
Residual for equation number 8 is equal to 0.17878
Residual for equation number 9 is equal to -0.0024868
Residual for equation number 10 is equal to 0
Residual for equation number 11 is equal to -0.2282
Residual for equation number 12 is equal to 0
Residual for equation number 13 is equal to 0

SOLVE: Iteration 20
Spurious convergence.
0.3826
3.9545
0.2019
0.2205
0.0139
-4.9425
0.1350
-0.0821
1.6269
0.0413
0.9908
0
0

??? Error using ==> steady_ at 132

Error in ==> steady at 52

Error in ==> frics at 190

## Error in ==> dynare at 132 evalin(‘base’,fname) ;

frics.mod (1.91 KB)

Either you compute the steady state by hand and enter the solution as initial values. Or you tweak the numerical values until it fits by using the residuals output as a guidance if you move closer. Or you try, if a different algorithm helps, i.e. use