STEADY: convergence problems

Dynare help (legacy posts)
1

Hi,
I have a .mod code to solve the dsge model with labor market frictions. but after I run the code, it shows:
Warning: Divide by zero.

In paper11_static at 93
In lnsrch1 at 77
In solve1 at 127
In dynare_solve at 112
In steady_ at 124
In steady at 52
In paper11 at 410
In dynare at 132

SOLVE: maxit has been reached
??? Error using ==> steady_ at 132
STEADY: convergence problems

Error in ==> steady at 52
steady_;

Error in ==> paper11 at 410
steady;

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

Anyone knows what’s the problem? Thanks,
paper11.mod (7.15 KB)

2

Hi,

Dynare can’t find the steady state.

You are not giving sufficiently good initial values to the solver, or your model does not have a steady state.