I appreciate it if someone can take a look and let me know where I’m going wrong. (I’m using Dynare 4.4.2)
I changed the rbc_monopolistic.mod file (in Dynare examples, written by Fernandez-Villaverde) so that I can compute the steady-state values within a steady-state file. I wrote a function res_lss.m to calculate the ‘error’ generated by an ad-hoc value of steady-state for labor (l_ss). The files are attached.
The rbc_monopolistic_steadystate.m uses the function res_lss.m to find the value of labor (l_ss) that satisfies the steady-state equations (i.e. generates no error). This l_ss is then used to calculate the rest of the steady-state values. The static equations are all satisfied (to see it, comment out the static equations in the steady-state file). Also, the steady-state file is the one that I downloaded from the forum and modified (dog_steadystate.m).
The error that I get is:
“Error using print_info (line 72)
The steadystate file did not compute the steady state”