Steady state problem

Steady state
1

Hi All,

I’m new to Dynare and having difficulty finding the steady state in my model. It is based on Iacoviello 2005 and Monacelli 2009, with housing in the utility function for two types of households, but without the NK elements. I’ve tried adjusting the parameters, initial values, maxit, and also removing the time subscripts. I keep getting the error:

Error using print_info (line 74)
Impossible to find the steady state. 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

I don’t have the analytical steady state solution. What other approaches could I try , or is there no steady state?

Thanks in advance!
delta

house.mod (4.25 KB)

2

Recheck your model. Your exogenous process is wrong. When you use

exp(A)=rho*exp(A(-1))+exp(eA);
the steady state for exp(A) must be 0, but the exponential function can never by 0. The correct equation should be

A=rho*A(-1)+exp(eA);