STEADY: The Jacobian contains Inf or NaN

General DSGE Modeling Replication Attempts
1

I am trying to run a dsge model and I get the following message:

The problem arises from:

STEADY: Derivative of Equation 5 with respect to Variable mu_z (initial value of mu_z: 0)
STEADY: Derivative of Equation 15 with respect to Variable mu_z (initial value of mu_z: 0)
STEADY: Derivative of Equation 16 with respect to Variable mu_z (initial value of mu_z: 0)
STEADY: Derivative of Equation 21 with respect to Variable mu_z (initial value of mu_z: 0)
STEADY: Derivative of Equation 4 with respect to Variable mu_I (initial value of mu_I: 0)
STEADY: Derivative of Equation 16 with respect to Variable mu_I (initial value of mu_I: 0)
STEADY: Derivative of Equation 21 with respect to Variable mu_I (initial value of mu_I: 0)
STEADY: Derivative of Equation 15 with respect to Variable R (initial value of R: 0)
STEADY: Derivative of Equation 37 with respect to Variable R (initial value of R: 0)
STEADY: Derivative of Equation 15 with respect to Variable PI (initial value of PI: 0)
STEADY: Derivative of Equation 21 with respect to Variable x (initial value of x: 0)
STEADY: Derivative of Equation 4 with respect to Variable u (initial value of u: 0)
STEADY: Derivative of Equation 16 with respect to Variable u (initial value of u: 0)
STEADY: Derivative of Equation 4 with respect to Variable q (initial value of q: 0)
STEADY: Derivative of Equation 5 with respect to Variable q (initial value of q: 0)
STEADY: Derivative of Equation 16 with respect to Variable k (initial value of k: 0)
STEADY: Derivative of Equation 37 with respect to Variable Rk (initial value of Rk: 0)
STEADY: Derivative of Equation 37 with respect to Variable varG (initial value of varG: 0)
STEADY: Derivative of Equation 37 with respect to Variable varGamma (initial value of varGamma: 0)
STEADY: Derivative of Equation 15 with respect to Variable mshk (initial value of mshk: 0)
STEADY: Derivative of Equation 37 with respect to Variable GammaDer (initial value of GammaDer: 0)
STEADY: Derivative of Equation 37 with respect to Variable GDer (initial value of GDer: 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 (line 60)
An element of the Jacobian is not finite or NaN

Error in evaluate_steady_state (line 66)
[ys,check] = dynare_solve([M.fname ‘_static’],…

Error in resol (line 104)
[dr.ys,M.params,info] = evaluate_steady_state(oo.steady_state,M,options,oo,0);

Error in check (line 73)
[dr,info,M,options,oo] = resol(1,M,options,oo);

Error in nk_FF_US_model (line 491)
oo_.dr.eigval = check(M_,options_,oo_);

Error in dynare (line 180)
evalin(‘base’,fname) ;

2

The problem is that that mod-file does not have initial values for steady state computation. Because of that, it does not run.

3

i have followed your instructions, now it show this error :

Starting Dynare (version 4.4.3).
Starting preprocessing of the model file …
ERROR: nk_FF_US_model.mod: line 141, col 75: syntax error, unexpected ‘;’

Error using dynare (line 174)
DYNARE: preprocessing failed

See attached code, please
nk_FF_US_model.mod (15 KB)

4

The line
LambdaYd=log(exp(LambdaA)^(1/(1-alppha))*exp(Lambdamu)^(alppha/(1-alppha));
is missing a closing bracket somewhere

5

I think it should be:

LambdaYd=log ( exp(LambdaA)^(1/(1-alppha)) ) *exp(Lambdamu)^(alppha/(1-alppha));

This closes the log expression after the exponent, as shown above, or you put the bracket right at the end of the equation.