I am having an issue with this code. It says:

Residuals of the static equations:

Equation number 1 : -1.5337

Equation number 2 : 4.8623

Equation number 3 : 1639.6101

Equation number 4 : 2424.3153

Equation number 5 : -205.7294

Equation number 6 : -0.57243

Equation number 7 : 0

Error using print_info (line 76)

The steadystate file did not compute the steady state

Error in steady (line 104)

print_info(info,options_.noprint, options_);

Error in sims (line 149)

steady;

Error in dynare (line 223)

evalin(‘base’,fname) ;

Error in execute (line 19)

dynare sims

I am pretty sure that I have calculated the steady state properly. Can anyone help to point out the issue.

Thanks in Advance

sims.mod (1.2 KB)

sims_steadystate.m (425 Bytes)