STEADY: numerical initial values incompatible with the foll


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!

Best regards,
toy_model.mod (428 Bytes)

The initval block has to be before the steady-command as otherwise all initial values are still 0 when the steady state is computed.

Thank you! Yes, you are right. I did not notice that I switched the two statements.