Steady state convergence problem

Dear all,

I am trying to solve a model with dynare. ALL I want is to derive steady state. But dynare keeps giving me error message:

Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.

Starting Dynare (version 4.2.0).
Starting preprocessing of the model file …
Found 9 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.

SOLVE: maxit has been reached
??? Error using ==> steady_ at 132
STEADY: convergence problems.

Thanks to everyone who helps me.
best regards

code2.mod (975 Bytes)

The nonlinear solver does not converge. Search the forum for various possible causes to this problem.