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)