Good morning I would like to know which suitable method to find steady state in my case either by Finding the steady state with Dynare nonlinear solver or by Using a steady state file. Thank you very much .

This is the message delivered by dynare:

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Local state space iteration (second order).

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

[mex] Quasi Monte-Carlo sequence (Sobol).

[mex] Markov Switching SBVAR.

Starting Dynare (version 4.3.2).

Starting preprocessing of the model file …

Found 23 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.

OPTIMAL SIMPLE RULE

STEADY: numerical initial values or parameters incompatible with the following equations

16

Please check for example

i) if all parameters occurring in these equations are defined

ii) that no division by an endogenous variable initialized to 0 occurs

STEADY: numerical initial values or parameters incompatible with the following equations

16

## Please check for example

i) if all parameters occurring in these equations are defined

ii) that no division by an endogenous variable initialized to 0 occurs

f at the beginning of new iteration, 100000000000.0000000000

Norm of dx 0

STEADY: numerical initial values or parameters incompatible with the following equations

16

Please check for example

i) if all parameters occurring in these equations are defined

ii) that no division by an endogenous variable initialized to 0 occurs

STEADY: numerical initial values or parameters incompatible with the following equations

16

Please check for example

i) if all parameters occurring in these equations are defined

ii) that no division by an endogenous variable initialized to 0 occurs

STEADY: numerical initial values or parameters incompatible with the following equations

16

## Please check for example

i) if all parameters occurring in these equations are defined

ii) that no division by an endogenous variable initialized to 0 occurs

Improvement on iteration 1 = 0.000000000

improvement < crit termination

zero gradient

OPTIMAL VALUE OF THE PARAMETERS:

mui 0.5

mupih 1.5

mupim 1.49

Objective function : 1e+011

STEADY: numerical initial values or parameters incompatible with the following equations

16

i) if all parameters occurring in these equations are defined

ii) that no division by an endogenous variable initialized to 0 occurs

STEADY: numerical initial values or parameters incompatible with the following equations

16

Please check for example

i) if all parameters occurring in these equations are defined

ii) that no division by an endogenous variable initialized to 0 occurs

??? Error using ==> print_info at 57

Impossible to find the steady state. Either the model doesn’t

have a steady state, there are an infinity of steady states,

or the guess values are too far from the solution

Error in ==> stoch_simul at 81

print_info(info, options_.noprint);

Error in ==> osr at 44

stoch_simul(var_list);

Error in ==> NK_GM052C at 293

osr(var_list_,osr_params_,obj_var_,optim_weights_);

Error in ==> dynare at 120

evalin(‘base’,fname) ;

NK_GM052C.mod (6.45 KB)