Sticky price and sticky wages problem

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)

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)

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.

Use the format of 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.