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)