Dear All,
I have a non-linear model and thus I provide a numerical solution in the steady_state_model_block. On changing certain parameters and modifying the steady_state_model_block accordingly, I get an error while solving for the steady state for Ramsey Policy: "Ramsey: The solution to the static first order conditions for optimal policy could not be found. 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.
Error in steady (line 102)
print_info(info,options_.noprint, options_);
Error in filename.driver (line 836)
steady;
Error in dynare (line 281)
evalin(‘base’,[fname ‘.driver’]); ". No such problem occurs with the Taylor Rule. Please advise