Dear friends and teachers
I have received the following error in dynare, how can I solve it?
Thank you for your reply.
dynare my_base_model
Starting Dynare (version 5.2).
Calling Dynare with arguments: none
Starting preprocessing of the model file …
Found 33 equation(s).
Evaluating expressions…done
Computing static model derivatives (order 1).
Computing dynamic model derivatives (order 2).
Processing outputs …
done
Preprocessing completed.
Residuals of the static equations:
Equation number 1 : 0 : m
Equation number 2 : 0 : 2
Equation number 3 : NaN : 3
Equation number 4 : NaN : 4
Equation number 5 : 0 : shi_m
Equation number 6 : 0 : inv
Equation number 7 : 0 : c
Equation number 8 : 0 : y
Equation number 9 : 0 : w
Equation number 10 : 0 : mc
Equation number 11 : NaN : L
Equation number 12 : 0 : icb
Equation number 13 : 0 : id
Equation number 14 : 0 : rr
Equation number 15 : NaN : 15
Equation number 16 : 0 : rl
Equation number 17 : 0 : url
Equation number 18 : 0 : a
Equation number 19 : 0 : pi
Equation number 20 : 0 : delthab
Equation number 21 : 0 : or
Equation number 22 : 0 : g
Equation number 23 : NaN : mb
Equation number 24 : NaN : 24
Equation number 25 : 0 : er
Equation number 26 : 0 : deltha_en
Equation number 27 : 0 : mui
Equation number 28 : NaN : fr
Equation number 29 : 0 : pif
Equation number 30 : 0 : dc
Equation number 31 : 5.832e-06 : ii
Equation number 32 : 0 : shi_i
Equation number 33 : NaN : 33
STEADY: numerical initial values or parameters incompatible with the following equations
3 4 11 15 23 24 28 33
Check whether your model is truly linear. Put “resid(1);” before “steady;” to see the problematic equations.
Residuals of the static equations:
Equation number 1 : NaN : m
Equation number 2 : NaN : 2
Equation number 3 : NaN : 3
Equation number 4 : NaN : 4
Equation number 5 : 1.1664e-06 : shi_m
Equation number 6 : 0 : inv
Equation number 7 : NaN : c
Equation number 8 : NaN : y
Equation number 9 : NaN : w
Equation number 10 : NaN : mc
Equation number 11 : NaN : L
Equation number 12 : 0 : icb
Equation number 13 : NaN : id
Equation number 14 : NaN : rr
Equation number 15 : NaN : 15
Equation number 16 : NaN : rl
Equation number 17 : NaN : url
Equation number 18 : 0 : a
Equation number 19 : NaN : pi
Equation number 20 : NaN : delthab
Equation number 21 : 0 : or
Equation number 22 : 0 : g
Equation number 23 : NaN : mb
Equation number 24 : NaN : 24
Equation number 25 : NaN : er
Equation number 26 : 0 : deltha_en
Equation number 27 : NaN : mui
Equation number 28 : NaN : fr
Equation number 29 : 0 : pif
Equation number 30 : NaN : dc
Equation number 31 : NaN : ii
Equation number 32 : NaN : shi_i
Equation number 33 : NaN : 33
Error using print_info (line 32)
The steady state has NaNs or Inf.
Error in steady (line 102)
print_info(info,options_.noprint, options_);
Error in my_base_model.driver (line 670)
steady;
Error in dynare (line 281)
evalin(‘base’,[fname ‘.driver’]);
Without the codes it is impossible to tell.
ok
how can I send you my cods?
is this enough?:
//--------------------------Endogenous variables Block-------------------------
var
//********* household variables****//
c (long_name='consumtion')
n (long_name='hours worked')
w (long_name='real wage')
m (long_name='liquidity, m2 in household basket')
mcm (long_name='money, fisical money in the basket of household')
id (long_name='intrest rate of time and saving deposits')
d (long_name='time and saving deposits and demand deposits')
er (long_name='real exchang rate')
k (long_name='capital')
ii (long_name='intrest rate of government bonds and policy instroment')
pi (long_name='inflation')
pif (long_name='foreign inflation')
rk (long_name='intrest of investment')
inv (long_name='investment')
//********* firm variables****//
y (long_name='Total output')
a
L (long_name='Loan of intermediate firm from bank')
rl (long_name='the rate Loan of intermediate firm from bank')
mc (long_name='marginal cost of intermediate firm')
//********* bank variables****//
delthab (long_name='default rate')
icb (long_name='the rate of loan of bank from central bank')
Lcb (long_name='the loan of bank from central bank')
rr (long_name='legal deposit rate')
url (long_name='the deffrence rate of debt to firm and deposit rate')
//********* open economy sector****//
or (long_name='oil revenue')
//********* government and central bank sector****//
g (long_name='government expenditure')
mui (long_name='money growth rate')
dc (long_name='Seigniorage')
fr (long_name='foreign assets of central bank')
mb (long_name='monetary base')
//********* shocks variables**********************//
shi_m (long_name='money demand shocks')
deltha_en (long_name='nominal exchang rate growth shocks')
shi_i;
//----------------------Exogenous variables------------------------------------
varexo
u_a u_m u_or u_g u_rr shi_url shi_pif shi_dc u_shi_i u_deltha_en;
//----------------------Parameters---------------------------------------------
Parameters
phi_ns (long_name='inverse Frisch elasticity')
betta (long_name='discount factor')
etta (long_name='relative M1 weight in money')
d_mcm
m_mcm
rr_b
delthab_b
url_b
id_b
icb_b
rl_b
pi_b
pc_b (long_name='Target inflation')
deltha (long_name='depreciation')
rk_b
alphha (long_name='kappial share in production function')
tetta (long_name='Substitution elasticity of intermediate goods')
ltvf (long_name='Ratio of cost financed with loan')
mc_b
n_b
k_b
w_b
be (long_name='relative money weight in utility function')
ve (long_name='semi-elasticity of money demand')
c_b
m_b
y_b
a_b
inv_b
g_b
mcm_b
d_b
mb_b
L_b
Lcb_b
Mui_b
dc_mb
er_bfr_b
fr_b
omegha (long_name='Calvo parameter')
rho_m (long_name='money demand shock parameter')
rho_url
rho_a (long_name='autocorrelation technology shock')
rho_delthab (long_name='weight of previous period default rate in default rate')
phi_delthay (long_name='weight of output gap in default rate')
rho_or (long_name='autocorrelation oil shock')
rho_g (long_name='autocorrelation government expenditure shock')
pho_deltha_en (long_name='autocorrelation exchang rate growth shock')
rho_pif
rho_dc
rho_pic
rho_i (long_name='lag of intrest rate feedback Taylor Rule')
rho_pi (long_name='inflation feedback Taylor Rule')
rho_y
rho_mui (long_name='money growth rate feedback Taylor Rule')
rhoshi_i (long_name='autocorrelation monetary policy shock')
rho_rr (long_name='autocorrelation legal deposit rate shock')
;
//-------------------Parametrization---------------------------------
betta=0.965;
etta=0.0486807597119462;
delthab_b=0.008;
url_b=0.009;
rr_b=0.1;
pi_b=1.042246635;
pc_b=1/0154321;
deltha=0.055;
alphha=0.588;
phi_ns=0;
tetta=7;
ltvf=0.9;
n_b=1;
g_b=1;
be=0.05;
ve=1.3153;
a_b=1;
Mui_b=1;
dc_mb=0.13;
omegha=0.351;
rho_m=0.8;
rho_url=0.8;
rho_a=0.9;
rho_delthab=0.8;
phi_delthay=0.8;
rho_or=0.779;
rho_g=0.875;
pho_deltha_en=0.8;
rho_pif=0.8;
rho_dc=0.8;
rho_pic=0.8;
rho_i=0.5;
rho_pi=0.9;
rho_y=0.02;
rho_mui=0.8;
rhoshi_i=0.8;
rho_rr=0.8;
id_b=((((1-rr_b-delthab_b+(rr_b*delthab_b))*url_b)/(rr_b+delthab_b-(rr_b*delthab_b)))+1)^(1/4);
d_mcm=(1-(betta/pi_b))/(1-((betta/pi_b)*id_b))*((1-etta)/etta);
m_mcm=(d_mcm)^(1-etta);
icb_b=id_b/(1-rr_b);
rl_b=id_b+url_b;
rk_b=(1/betta)-1+deltha;
mc_b=(tetta-1)/tetta;
k_b=(alphha*mc*rk_b/(1+(ltvf*rl_b)))^(1/(1-alphha));
inv_b=k_b*deltha;
w_b=((1-alphha)/alphha)*rk_b*k_b;
c_b=((1-be)*w_b)^(1/ve);
m_b=(((1-be)*(1-(betta*id_b/pi_b))/(be*etta*(d_mcm^((-1)*etta))))^(-1/ve))*c_b;
y_b=k_b^alphha;
mcm_b=m_b/((d_mcm)^(1-etta));
d_b=mcm_b*d_mcm;
mb_b=mcm_b+(d_b*rr_b);
L_b=ltvf*((w_b*n_b)+(rk_b*k_b));
Lcb_b=L_b-((1-rr_b)*d_b);
er_bfr_b=mb_b-(dc_mb*mb_b)-Lcb_b;
fr_b=mb_b-(dc_mb*mb_b)-Lcb_b;
//----------------------Model Declaration Block--------------------------------
model(linear);
//liquidity decomposition
m=etta*mcm+(1-etta)*d;
//labor supply
phi_ns*n=w-(ve*c);
// fisical money demand
((be*etta*(m_b^(-ve))*((d_b/mcm_b)^(1-etta)))*((-ve)*m+(etta-1)*mcm+(1-etta)*d+shi_m))+(betta/pi_b)*(1-be)*(c_b^(-ve))*((-ve*c(+1))-pi(+1))=(1-be)*(c_b^(-ve))*(-ve*c);
// deposit demand
((be*(1-etta)*(m_b^(-ve))*((d_b/mcm_b)^(-etta)))*((-ve)*m+(etta)*mcm+(-etta)*d+shi_m))+(betta/pi_b)*(1-be)*(c_b^(-ve))*(id_b)*(((-ve*c(+1))-pi(+1))+id)=(1-be)*(c_b^(-ve))*(-ve*c);
//money demand shock
shi_m=rho_m*shi_m(-1)+u_m;
//investment
inv = (1/deltha)*(k-(1-deltha)*k(-1));
//Euler
c=c(+1)-(1/ve)*(ii-pi(+1));
//prodution function
y=alphha*k(-1)+(1-alphha)*n;
//factor demand
w=k(-1)+rk-n;
//marginal cost
mc=(((1/alphha)^(alphha))*((1/(1-alphha))^(1-alphha))*(rk_b^alphha)*(w_b^(1-alphha))/mc_b)*((1+(ltvf*rl_b))*((alphha*rk)+((1-alphha)*w)-a)+(ltvf*rl_b*rl));
//Loan of firm from bank
L=(ltvf/L_b)*(((w_b*n_b)*(w+n))+((rk_b*k_b)*(rk+k)));
//the intrest rate of central bank to comercial one
icb=(rl_b/icb_b)*(1-delthab_b)*rl-(rl_b*delthab_b/icb_b)*delthab;
//deposit intrest rate
id=(1-rr_b)*(icb_b/id_b)*icb-(icb_b*rr_b/id_b)*rr;
rr=rho_rr*rr(-1)+u_rr;
//debt or firms to bank
L=(d_b/L_b)*(1-rr_b)*d-(d_b*rr_b/L_b)*rr+(Lcb_b/L_b)*Lcb;
//the rate of debt to firm
rl=((id_b/rl_b)*id)+url;
//the deffrence rate of debt to firm and deposit rate
url=rho_url*url(-1)+shi_url;
//technology shoch
a=rho_a*a(-1)+u_a;
//phillps curve
pi=betta*pi(+1)+((1-omegha*betta)*(1- omegha)/ omegha)*mc;
//default rate
delthab=rho_delthab*delthab(-1)+phi_delthay*y;
//oil export
or=rho_or*or(-1)+u_or;
//government expenditure shock
g=rho_g*g(-1)+u_g;
//monatary base According to sources
mb=(dc_mb)*dc+(Lcb_b/mb_b)*Lcb+(er_bfr_b/mb_b)*(er+fr);
//monatary base According to expenses
mb=(mcm_b/mb_b)*mcm+(rr_b*d_b/mb_b)*(rr+d);
//real exchange rate
er=er(-1)+deltha_en+pif-pi;
deltha_en=pho_deltha_en*deltha_en(-1)+u_deltha_en;
//money growth rate
mui=m-m(-1)+pi;
//foreign reserves of the central bank
fr=fr(-1)-pif+(1/fr_b)*or;
//foreign inflation
pif=rho_pif*pif(-1)+shi_pif;
//Deficit
dc=rho_dc*dc(-1)+shi_dc;
//intrest rate target (monatary policy target)
ii=rho_i*ii(-1)+rho_pi*(pi-pc_b)+rho_y*(y)+rho_mui*(mui)+shi_i;
shi_i=rhoshi_i*shi_i(-1)+u_shi_i;
//resource constraint
y=(c_b/y_b)*c+(inv_b/y_b)*inv+(g_b/y_b)*g;
end;
//----------------------Initial Value of Endogenous Variables Block -----------
initval;
c=0;
n=0;
w=0;
m=0;
mcm=0;
id=0;
d=0;
er=0;
k=0;
ii=0;
pi=0;
pif=0;
rk=0;
inv=0;
//********* firm variables****//
y=0;
L=0;
rl=0;
mc=0;
//********* bank variables****//
delthab=0;
icb=0;
Lcb=0;
rr=0;
url=0;
//********* open economy sector****//
or=0;
//********* government and central bank sector****//
g=0;
mui=0;
dc=0;
fr=0;
mb=0;
//********* shocks variables**********************//
shi_m=0;
deltha_en=0;
shi_i=0;
end;
resid(1);
steady;
check;
//----------------------The Shocks Block---------------------------------------
shocks;
var u_a;
stderr 0.01;
var u_m;
stderr 0.01;
var u_or;
stderr 0.01;
var u_g;
stderr 0.01;
var u_rr;
stderr 0.01;
var shi_url;
stderr 0.01;
var shi_pif;
stderr 0.01;
var shi_dc;
stderr 0.01;
var u_shi_i;
stderr 0.01;
var u_deltha_en;
stderr 0.01;
end;
//----------------------The Simulation Block-----------------------------------
stoch_simul(periods=10000, irf=30);
dear Dr.
I realy thank you