Steady State problem in non linear model

dsge_risks.mod (4.94 KB)

Hi guys, I am trying to replicate the paper “Risk Matters: The Real Effects of Volatility Shocks” by Fernandez-Villaverde et al. but I am having problems calculation the steady state. I get following message: Error using

Starting Dynare (version 4.4.2).
Starting preprocessing of the model file …
Found 14 equation(s).
Evaluating expressions…done
Computing static model derivatives:

  • order 1
    Computing dynamic model derivatives:
  • order 1
  • order 2
  • order 3
    Processing outputs …done
    Preprocessing completed.
    Starting MATLAB/Octave computing.

print_info (line 72)
The steadystate file did not compute the steady state
Error in stoch_simul (line 98)
print_info(info, options_.noprint, options_);
Error in dsge_risks (line 267)
info = stoch_simul(var_list_);
Error in dynare (line 180)
evalin(‘base’,fname) ;

I am using the steady state model block, but it’s not working.
The original paper can be found here
the model is in page 21
thanks everyone
risk.pdf (994 KB)

See [K_order_perturbation error) and the link to the mod-file there.