# Steady State Help

**URL:** <https://forum.dynare.org/t/steady-state-help/6036>\
**Category:** Dynare help (legacy posts)\
**Created:** [15 February 2017 01:04 UTC](https://forum.dynare.org/t/steady-state-help/6036 "2017-02-15T01:04:04Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![silvaslick](https://forum.dynare.org/letter_avatar_proxy/v4/letter/s/d6d6ee/32.png) [@silvaslick](https://forum.dynare.org/u/silvaslick)\
**Post date:** [15 February 2017 01:04 UTC](https://forum.dynare.org/t/steady-state-help/6036/1 "2017-02-15T01:04:04Z")

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Hello!  
I am trying to replicate a model by Anand and Prasad(2010) for a class project but I am struggling to compute the steady state values. I keep getting the following error and frankly, I am at a loss as what to do.

STEADY: The Jacobian contains Inf or NaN. The problem arises from:

STEADY: Derivative of Equation 8 with respect to Variable Ctf (initial value of Ctf: 2)  
STEADY: Derivative of Equation 8 with respect to Variable Cts (initial value of Cts: 2)  
STEADY: Derivative of Equation 8 with respect to Variable xst (initial value of xst: 0)  
STEADY: Derivative of Equation 9 with respect to Variable xst (initial value of xst: 0)

STEADY: The problem most often occurs, because a variable with  
STEADY: exponent smaller than 1 has been initialized to 0. Taking the derivative  
STEADY: and evaluating it at the steady state then results in a division by 0.

Practically a new student at Dynare! Any help is deeply appreciated!

Thanks

[diss3.mod](https://forum.dynare.org/uploads/default/original/2X/a/aa4a38ced3aaa106c639735c5ecdfc464997ee0f.mod) (1.32 KB)

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [15 February 2017 07:54 UTC](https://forum.dynare.org/t/steady-state-help/6036/2 "2017-02-15T07:54:58Z")

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Recheck both the model equations and the initval block:

1. In the initval block

`xst=(theta/theta-1)*mct;
`  
the mct is not defined yet and there is a bracket missing as otherwise the bracket always evaluates to 0  
2. `Aft(+1)=rhoaf*Aft + epsxi;
`  
has a problem with timing (it should be lagged by one period) and should be in logs. Currently the equations has steady state `Aft=0`, but that  
is incompatible with e.g.

`xft=phin*((yft)^(psi))*((Ctf)^(sigma))*((Aft)^(-1-psi));
`  
where Aft must be 1

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**Author:** ![silvaslick](https://forum.dynare.org/letter_avatar_proxy/v4/letter/s/d6d6ee/32.png) [@silvaslick](https://forum.dynare.org/u/silvaslick)\
**Post date:** [19 February 2017 01:48 UTC](https://forum.dynare.org/t/steady-state-help/6036/3 "2017-02-19T01:48:01Z")

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Thanks for the help. I made the aforementioned corrections yet I am still not able to calculate the steady state values. Is there anyway that can be bypassed on Dynare and still generate the required results? I am getting the following error:SOLVE: maxit has been reached

[quote]Residuals of the static equations:

Equation number 1 : 0.12723  
Equation number 2 : 0.0096714  
Equation number 3 : 0.14266  
Equation number 4 : 0.22491  
Equation number 5 : 0  
Equation number 6 : 0.54044  
Equation number 7 : 0.25168  
Equation number 8 : 0.12782  
Equation number 9 : -0.039531  
Equation number 10 : 0  
Equation number 11 : 1.8909  
Equation number 12 : 0  
Equation number 13 : 0  
Equation number 14 : 0  
Equation number 15 : 0

Error using print\_info (line  
74)  
Impossible to find the steady  
state. Either the model  
doesn’t have a steady state,  
there are an infinity of  
steady states, or the guess  
values are too far from the  
solution[/quote]

I attached the file and the equations I am trying to replicate. Any assistance is deeply appreciated. I am in need of dire help! 😢  
[relevant equations.pdf](https://forum.dynare.org/uploads/default/original/2X/8/8aa08b82f96748905457557e83dde65188955c44.pdf) (149 KB)  
[diss3.mod](https://forum.dynare.org/uploads/default/original/2X/d/dec60ffaf4df0c3300ecbb3ecd70f87f7e6c9c84.mod) (1.38 KB)

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<div class="post-metadata">

**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [21 February 2017 15:48 UTC](https://forum.dynare.org/t/steady-state-help/6036/4 "2017-02-21T15:48:22Z")

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One of the problems in your mod-file is that there is no unique steady state, making it impossible to use a solver the way you do. The first issue is the collinearity in the Taylor rule, see [[An infinity of steady states with Taylor rules](https://forum.dynare.org/t/an-infinity-of-steady-states-with-taylor-rules/4026/1))  
I would strongly recommend computing the steady state analytically-