I have composed a two equation model for illustrative purpose. I have attached the file. I want to solve for the steady state (the time leads and lags do not matter), however, I get an error message: “STEADY: numerical initial values incompatible with the following equations”.
I want to use the hybrid Philips curve in a nonlinear model. However, due to the problem I have described to you I cannot compute the steady state.
I would appreciate if you could help me. Thank you!
toy_model.mod (428 Bytes)