Dear All,

I’m running my model with dynare and getting error message as follows:

STEADY: The Jacobian contains Inf or NaN. The problem arises from:

STEADY: Derivative of Equation 2 with respect to Variable c_h (initial value of c_h: 0.61)

STEADY: Derivative of Equation 5 with respect to Variable c_h (initial value of c_h: 0.61)

STEADY: Derivative of Equation 18 with respect to Variable c_h (initial value of c_h: 0.61)

STEADY: Derivative of Equation 2 with respect to Variable q (initial value of q: 3.812)

STEADY: Derivative of Equation 2 with respect to Variable m (initial value of m: 0.7)

STEADY: Derivative of Equation 2 with respect to Variable phi_h (initial value of phi_h: 17.03)

STEADY: Derivative of Equation 3 with respect to Variable phi_h (initial value of phi_h: 17.03)

STEADY: Derivative of Equation 5 with respect to Variable phi_h (initial value of phi_h: 17.03)

STEADY: Derivative of Equation 12 with respect to Variable phi_h (initial value of phi_h: 17.03)

STEADY: Derivative of Equation 3 with respect to Variable x (initial value of x: 2.727)

STEADY: Derivative of Equation 12 with respect to Variable d (initial value of d: 1.282)

STEADY: Derivative of Equation 3 with respect to Variable l_h (initial value of l_h: 0.019)

STEADY: Derivative of Equation 5 with respect to Variable r_d (initial value of r_d: 12.23)

STEADY: Derivative of Equation 12 with respect to Variable r_d (initial value of r_d: 12.23)

STEADY: Derivative of Equation 6 with respect to Variable c_e (initial value of c_e: 0.18)

STEADY: Derivative of Equation 18 with respect to Variable c_e (initial value of c_e: 0.18)

STEADY: Derivative of Equation 12 with respect to Variable s (initial value of s: 9.145)

STEADY: Derivative of Equation 12 with respect to Variable r_lb (initial value of r_lb: 17.186)

STEADY: Derivative of Equation 12 with respect to Variable l_b (initial value of l_b: 11.098)

STEADY: Derivative of Equation 12 with respect to Variable r_p (initial value of r_p: 12.75)

STEADY: Derivative of Equation 6 with respect to Variable (initial value of : 0)

STEADY: Derivative of Equation 3 with respect to Variable w (initial value of w: 0)

STEADY: Derivative of Equation 18 with respect to Variable h_h (initial value of h_h: 0)

STEADY: Derivative of Equation 12 with respect to Variable l_e (initial value of l_e: 0)

STEADY: Derivative of Equation 12 with respect to Variable y (initial value of y: 0)

STEADY: Derivative of Equation 12 with respect to Variable q_k (initial value of q_k: 0)

STEADY: Derivative of Equation 12 with respect to Variable s (initial value of s: 0)

STEADY: Derivative of Equation 12 with respect to Variable c_e (initial value of c_e: 0)

STEADY: Derivative of Equation 12 with respect to Variable r_d (initial value of r_d: 0)

STEADY: The problem most often occurs, because a variable with

STEADY: exponent smaller than 1 has been initialized to 0. Taking the derivative

STEADY: and evaluating it at the steady state then results in a division by 0.

??? Error using ==> dynare_solve at 60

An element of the Jacobian is not finite or NaN

Error in ==> evaluate_steady_state at 66

[ys,check] = dynare_solve([M.fname ‘_static’],…

Error in ==> steady_ at 54

[steady_state,params,info] = evaluate_steady_state(oo_.steady_state,M_,options_,oo_,~options_.steadystate.nocheck);

Error in ==> steady at 81

[steady_state,M_.params,info] = steady_(M_,options_,oo_);

Error in ==> dy1 at 614

steady;

Error in ==> dynare at 180

evalin(‘base’,fname) ;

How to solve that problem?

Hope your help.

Thanks in advance

dy1.mod (5.02 KB)