I have a model that I log-linearized by hand and entered as model(linear); in my mod file. When I try to run steady state, I get the following error message:
Error using ==> lnsrch1 at 53
Some element of Newton direction isn’t finite. Jacobian maybe singular or there is a problem with initial values.
Error in ==> solve1 at 126
[x,f,fvec,check] = lnsrch1(xold,fold,g,p,stpmax,func,j1,j2,varargin(:));
Error in ==> dynare_solve at 110
[x,info] = solve1(func,x,j1(r(i):r(i+1)-1),j2(r(i):r(i+1)-1), jacobian_flag,varargin(:));
Error in ==> steady_ at 69
[oo_.steady_state, check] = dynare_solve([M_.fname ‘_static’],…
Is there a reason dynare would have trouble searching for the steady state of an already log-linearized model? I thought dynare automatically initialized variables at 0 (I do not supply initial values), and since this is the true values of the log-linearized variables at steady state, I do not see what is happening.