I’m having problems finding the steady state of my model. I managed to reduce the residuals of some equations, and even bring 7 out of 18 to hold exactly. However I can’t get dynare to find the steady state, I’ve tried the following:

- use the different solvers
- play with the starting values to progressively reduce the residuals
- derived some steady states manually
- used the program kindly posted by one of the users, called dynareFindSteadyState

However I get the following message when doing option 4:

no unique convergent solution

failed to compute steady state

Can anyone give me any tips, or indicate what is going wrong please?

I’m attaching the complete mod file below. It’s a small NK model a la’ Gali et.al (2005), with ricardian and rule-of-thumb households. The economy is very small and forms part of a monetary union, though it does not affect it. The government sector is switched off for the moment to try and simplify it.

Many thanks

W

model_w.mod (2.39 KB)