Steady State Computation Error

Estimation
#1

Hello,

I am running a mode estimation of my model but Dynare is unable to compute the steady state. In a prior version of the model, where the variable Rs was restricted to equal Rk at steady state, this issue did not occur. It occurs only once I remove this restriction and provide a separate steady state equation for Rs in my steady state file. My guess is that the initial conditions are causing some error and this will require a different steady state solver. Is that the solution? If so, how do I change the solver when using a steady state file? Please find my accompanying materials attached.

Thanks!

f_KL.m (1.2 KB)
f_mom.m (1.1 KB)
f_simul.m (3.4 KB)
K2022_ANCHORING.mod (8.4 KB)
K2022_ANCHORING_steadystate.m (5.2 KB)
K2022_DATA.mat (7.4 KB)

#2

Excuse me , Can you provide a reference paper?

like the book equantion’s condition,

At the steady state \frac{R_{ss}T_{ss}^\kappa}{P_{ss}}=\Psi_1,
\frac{R_{ss}T_{ss}^\kappa}{P_{ss}}(\tilde{R}_t-\tilde{P}_t+\tilde{T}_t^\kappa) = \Psi_2 U_{ss}\tilde{U}_t

=\chi\beta E_t Q_{t+1}(\frac{E_tI_{t+1}}{I_t})^2(\frac{E_tI_{t+1}}{I_t})-1

#3

Your steady state has

nu      =   log(((1-theta)*betta*(exp(Rs)-exp(R)))/(1-betta*theta*exp(x)));

where now

exp(Rs)-exp(R)

is negative. Then taking the log is a problem.