Steady State not calculated

Hi Kyusik,

welcome in the forum :slight_smile:
When you put the commands

resid(1);
steady;
model_diagnostics;

in your code you will see that there are some errors. The main problem is that you did not declare initial values for all endogenous variables. If this is the case, Dynare assumes 0 and for instancen equation 3 then has 0/0. Maybe you have some more information regarding the steady state that you could use as initial values or calculate it yourself? The model does not seem too large, maybe it is possible to analytically calculate the steady state. If that is possible, that would definitely solve your problem and should be your go to strategy.

Cheers

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