Please help me…

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 …

Substitution of exo leads: added 1 auxiliary variables and equations.

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

STEADY: convergence problems

Error in ==> steady at 52

steady_;

Error in ==> frics at 190

resid(1);steady;

## Error in ==> dynare at 132

evalin(‘base’,fname) ;

frics.mod (1.91 KB)