Sticky price and sticky wages problem

Steady state
1

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)

2

You did not post the param_nc.mat file, so I can’t run your example.

However it looks like you used the wrong order for the vector of endogenous variables returned by the sims_steadystate.m file. You should use the declaration order, i.e. the order in the var statement.

3

Use the format of https://git.dynare.org/Dynare/dynare/blob/4.5/examples/NK_baseline_steadystate.m to correct the variable ordering. Also, you did not consistently use the fact that x is in logs. The following file works;

sims_steadystate.m (1.5 KB)

Regarding the BK error, check the timing in all equations.