Hi. I’m new to Dynare and I want to replicate the result of Kiyotaki et al(2020) using Dynare.
(Housing, Distribution and Welfare by Nobuhiro Kiyotaki, Alexander Michaelides, Kalin Nikolov :: SSRN)
I wrote a mod file but it turned out that it could not produce a steady state with an automatic “steady;” block.
I think I followed any rule and carefully copied the equations, parameterization, and so on…
The error message that I get is the following:
"
Impossible to find the steady state (the sum of square
residuals of the static equations is 17790.8330). 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
"
Could you look at the mod file and give me any advice to help me out of here?
Thank you for reading.housing_new.mod (1.3 KB)