Hi everybody,

I am trying to replicate Smets and Wouters (2007) codes which I found on the AER website. But I am facing some problems with the steady state parameters restrictions. In their original usmodel.mod file in fact they made use of usmodel_stst.m to set these restrictions. Now I think that the _stst file is obsolete for the new version of Dynare and I search in this forum where I found that now I should use a _steadystate.m file. Given that I was new with it I searched how to use it in Dynare manual (dynare.pdf) and I found that I could alternatively write the steady_state_model block in the .mod file. Unfortunately, dynare returns me the following error message:

??? Error using ==> print_info

The steadystate file did not compute the steady state

The problem is that I cannot understand what is wrong. Maybe the way I wrote the block. Notice that what I need it for is to obtain estimates for parameters which are consistent with the steady state restrictions. If I run SW code without making use of the steady_state_model block, it works but these restrictions are not satisfied.

I attach you SW .mod file (slightly modified), the data file and the _steadystate2.m file generated by the steady_state_model block.

Could you please tell me whatâ€™s wrong there?

Thank you very much

Alice

usmodel_alice_steadystate2.m (1.09 KB)

usmodel_data_alice.xls (50 KB)

usmodel_alice.mod (7.63 KB)