Hello everyone,

I have a problem with a mod file, I’m running a model with debt and discursive taxes and dynare do not solve steady states. I’m almost sure that it is due to the discursive taxe processes because when I fix taxes as constant and I remove the autoregressive process, Dynare is able to find the steady states for my model, therefore my equations should be correct and the error comes from distorsion taxes part.

I attach here my mod file, if someone could help me with this I would be really grateful.

Thanks in advance

Best

Hugo

Simplemodel8bis.mod (3.8 KB)