Dear all,

I am doing simple open economy model with tradable and nontradable goods. I got an error message showing “The steadystate file did not compute the steady state”, and I looked at the Residuals of the static equations which is showing like:

Residuals of the static equations:

Equation number 1 : 0.79691

Equation number 2 : 0.38594

Equation number 3 : 0

Equation number 4 : 0

Equation number 5 : 0.162

Equation number 6 : 0

Equation number 7 : 0

Equation number 8 : 0

Equation number 9 : 0.20024

Equation number 10 : -0.015023

Equation number 11 : 0

Equation number 12 : 0

Equation number 13 : 0

Equation number 14 : 0.001005

Equation number 15 : 0

I numerically calculated the steady states and input them by using steady_state_model; block. Does the error message appear because I got too big residuals in some equations and I got wrong steady states? If I log-linearize, will the problem be gone? Thank a lot!

J

model1.mod (1.23 KB)