Steady state

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)

check your equations. For example in equation 2, you divide by rlh_ss, but this parameter is 0. Put

before steady and follow all equations that have NaNs.

Dear All,

Thank you Johannes Pfeifer for the suggestion before. But after I changed the initial value, the problem as follows :

Maximum number of iterations reached:
increase options.MaxIter.

Residuals of the static equations:

Equation number 1 : 1.1133
Equation number 2 : -0.28936
Equation number 3 : -0.66412
Equation number 4 : -3.0979
Equation number 5 : 0.6477
Equation number 6 : 0.24674
Equation number 7 : 0.24972
Equation number 8 : -2.2421
Equation number 9 : -0.201
Equation number 10 : -0.072845
Equation number 11 : -0.18413
Equation number 12 : -0.22942
Equation number 13 : 1.1682
Equation number 14 : 0.88672
Equation number 15 : -0.15934
Equation number 16 : -5.109
Equation number 17 : 0.14378
Equation number 18 : 5.3377
Equation number 19 : -107.3222

??? Error using ==> print_info at 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

Error in ==> steady at 92
print_info(info,options_.noprint, options_);

Error in ==> dynare_1 at 639
steady;

Error in ==> dynare at 180
evalin(‘base’,fname) ;

Whats the problem of this estimation ? I’ve tried change the initial value but always receive this error message.
Hope your help.

Thanks in advance
Yulia
dynare_1.mod (5.42 KB)

Please sit down and rethink what you are doing here. It seems you are mixing linearized equations with nonlinear ones. This generally makes not much sense and risks making inconsistent choices, because some parameters are functions of the steady state values for the variables that you are trying to determine.