# Steady state values in log-linearized model: Problem

**URL:** <https://forum.dynare.org/t/steady-state-values-in-log-linearized-model-problem/4947>\
**Category:** Dynare help (legacy posts)\
**Created:** [25 August 2015 09:23 UTC](https://forum.dynare.org/t/steady-state-values-in-log-linearized-model-problem/4947 "2015-08-25T09:23:21Z")\
**Posts on this page:** 1\
**Showing post:** 3

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [30 August 2015 15:18 UTC](https://forum.dynare.org/t/steady-state-values-in-log-linearized-model-problem/4947/3 "2015-08-30T15:18:45Z")

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You have some linear equations with a constant term, namely the observation equations. Given that you have 70 equations or so, there is some numerical imprecision. You should provide initial values for the non-zero variables, i.e.

`initval;
// Domestic inflation
pi_obs = 100*(pi - 1);
// CPI inflation
pi_c_obs = 100*(pi - 1);
// GDP
dy_obs = 100*ln(mu_z);
// Consumption
dc_obs = 100*ln(mu_z); 
// Investment
di_obs = 100*ln(mu_z); 
// Imports
dm_obs = 100*ln(mu_z);
// Exports
dx_obs = 100*ln(mu_z); 
// Government spending
dg_obs = 100*ln(mu_z); 
// CPI based real exchange rate
reer_obs = x; 
// Employment
e_obs = E; 
// Real wage
dw_obs = 100*ln(mu_z); 
// Domestic interest rate
r_obs = 400*(((pi*mu_z-tau_k*beta)/((1-tau_k)*beta))-1)*((pi*mu_z-tau_k*beta)/((1-tau_k)*beta));
// Foreign output
dyfor_obs = 100*ln(mu_z);
// Foreign inflation
pifor_obs = 100*(pi - 1);
// Foreign interest rate
rfor_obs = 400*((pi*mu_z-tau_k*beta)/((1-tau_k)*beta) - 1)*(pi*mu_z-tau_k*beta)/((1-tau_k)*beta);
end;
`

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