I have coded this model:
var c L g int infl unemp delta R;
varexo eta_shock;
parameters beta phipi phiu lambda pibar xi alpha chi varpi Psi rho;
set_param_value('beta',0.9951);
set_param_value('phipi',1.5);
set_param_value('phiu',0.5);
set_param_value('lambda',0.5);
set_param_value('xi',0.4);
set_param_value('chi',1.2135);
set_param_value('rho',0.0);
set_param_value('pibar',0.02);
set_param_value('alpha',0.0256);
set_param_value('varpi',(1/aplha-1)*alpha^(2/1-alpha))));
set_param_value('Psi',0.8241);
///////////////////////////////////////
model;
//(AD)
1 = beta * R * c / c(+1) /g;
//(GG)
g= beta * c/c(+1) * (chi * varpi * L(+1) +1 -eta_shock);
//(RR)
Psi*L=c+(g-1)/chi;
//(PC)
1+infl= (beta*(chi * varpi + 1)) /g * (1+infl(-1))^lambda*(1+pibar)^(1-lambda)*L^xi;
//delta
delta = 1+ rho*log(delta(-1)) +eta_shock;
R = (1+int)/(1+infl(+1));
//monetary policy: taylor rule
1+int=(1+pibar) * (chi * varpi+1) *(infl-pibar)^phipi * (L^phiu)*delta;
//int= pibar+log(chi*varpi+1)+phipi*(infl-pibar)-phiu*unemp+delta;
unemp = -log(L);
end;
///////////////////////////////////////
steady_state_model;
L=1;
delta=1;
unemp=0;
g=beta*(chi*varpi+1);
infl=pibar;
c=Psi-(beta*(chi*varpi+1)-1)/chi;
R=chi*varpi+1;
int=(1+pibar) * (chi * varpi+1)-1;
end;
steady;
check;
///////////////////////////////////////
initval;
L=1;
unemp=0;
g=beta*(chi*varpi+1);
infl=pibar;
c=Psi-(beta*(chi*varpi+1)-1)/chi;
delta=1;
R=(chi*varpi+1);
int=(1+pibar) * (chi * varpi+1)-1;
end;
///////////////////////////////////////
endval;
L=1;
unemp=0;
g=beta*(chi*varpi+1);
infl=pibar;
c=Psi-(beta*(chi*varpi+1)-1)/chi;
delta=1;
R=(chi*varpi+1);
int=(1+pibar) * (chi * varpi +1)-1;
end;
///////////////////////////////////////
shocks;
var eta_shock;
periods 1;
values 0.01;
end;
///////////////////////////////////////
perfect_foresight_setup(periods=20);
perfect_foresight_solver(lmmcp);
#--------------------
I get the following error:
Error using print_info
The steadystate file did not compute the steady state
Error in steady (line 102)
print_info(info,options_.noprint, options_);
Error in A_6.driver (line 198)
steady;
Error in dynare (line 281)
evalin(‘base’,[fname ‘.driver’]);
Error in A_main (line 20)
dynare A_Q.mod
and the following values:
Residuals of the static equations:
Equation number 1 : 0 : 1
Equation number 2 : 0 : g
Equation number 3 : 0 : 3
Equation number 4 : 0 : 4
Equation number 5 : 0 : delta
Equation number 6 : 0 : R
Equation number 7 : 1.0455 : 7
Equation number 8 : 0 : unemp
The variable unemp is not used. Can you help me to find why I get this error and how only one variable (Equation number 7) is off? This is the int variable.