# The jacobian matrix evaluated at the steady state is complex

Dear all,
I am trying to use a DSGE model based on Adolfson 2005 to do forecast. While searching this forum to find answer to my previous problems, I realize I didn’t update steady state values which depending on the deep parameters of the model, so I move all _ss equations under model-block with “#”, see below:

model(linear);

// --------------------------------- Coefficients for equation (10)-------------------
#b_w=(lambda_wsigma_L-1+lambda_w)/((1-betaxi_w)(1-xi_w));
#eta_0=b_w
xi_w;
#eta_1=sigma_Llambda_w-b_w(1+betaxi_w^2);
#eta_2=b_w
betaxi_w;
#eta_3=-b_w
xi_w;
#eta_4=b_wbetaxi_w;
#eta_5=b_wxi_wkappa_w;
#eta_6=-b_wbetaxi_wkappa_w;
#eta_7=1-lambda_w;
#eta_8=-(1-lambda_w)sigma_L;
#eta_9=-(1-lambda_w)
(tau_y_ss/(1-tau_y_ss));
#eta_10=-(1-lambda_w)
(tau_w_ss/(1+tau_w_ss));
#eta_11=-1+lambda_w;

#gamma_i_d_ss=((1-omega_i+omega_i*(lambda_m_i_ss^(1-eta_i)))^(1/(1-eta_i))); // Equation (SS6)
#gamma_c_d_ss=((1-omega_c+omega_clambda_m_c_ss^(1-eta_c))^(1/(1-eta_c))); // Equation (SS6-a)
#gamma_c_mc_ss=((omega_c+(1-omega_c)
(1/lambda_m_c_ss)^(1-eta_c))^(1/(1-eta_c))); // Equation (SS6-b)
#gamma_i_mi_ss=((omega_i+(1-omega_i)*(1/lambda_m_i_ss)^(1-eta_i))^(1/(1-eta_i))); // Equation (SS6-c)

#pi_ss=(mu_ss/mu_z_ss); // Equation (SS1’)
#R_ss=(pi_ssmu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta); // Equation (SS1)
#R_f_ss=nu_ss
R_ss+1-nu_ss; // Equation (SS2) // Equation (SS2)
#r_k_ss=((mu_z_ssgamma_i_d_ss-beta(1-delta)*gamma_i_d_ss))/((1-tau_k_ss)*beta); // Equation (SS5)
#w_bar_ss=(1-alpha)*lambda_d_ss^(-1/(1-alpha))*alpha^(alpha/(1-alpha))r_k_ss^(-alpha/(1-alpha))R_f_ss^(-1);
#H_over_k_ss=alpha/(1-alpha)mu_z_ssw_bar_ss
R_f_ss
r_k_ss^(-1);

#D1=(((1-omega_c)gamma_c_d_ss^eta_c)+(omega_cgamma_c_mc_ss^eta_c));
#D2=(1-g_r)/lambda_d_ssmu_z_ss^(-alpha)H_over_k_ss^alpha-((1-omega_i)gamma_i_d_ss^eta_i+omega_igamma_i_mi_ss^eta_i)(1-(1-delta)/mu_z_ss)H_over_k_ss;
#D3=(((1-tau_y_ss)/lambda_w
w_bar_ss/(1+tau_w_ss))/A_L)^(1/sigma_L);
#D4=((mu_z_ss-beta
b)/((1+tau_c_ss)*(mu_z_ss-b)))*gamma_c_d_ss^(-1);

#H_ss=(D3D4^(1/sigma_L)(D2/D1)^(-1/sigma_L))^(sigma_L/(1+sigma_L));
#c_ss=D2/D1H_ss;
#psi_z_ss=1/c_ss
D4;
#phi_ss=((lambda_d_ss-1)(mu_z_ss^(-alpha))((((1-alpha)(((mu_z_ssgamma_i_d_ss-beta*(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss))))^(-alpha))(((((((1-tau_y_ss)(1/lambda_w)((((1/(lambda_d_ss((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))/(1+tau_w_ss))/A_L)^(1/sigma_L)))(((((mu_z_ss-betab)/((1+tau_c_ss)(mu_z_ss-b)))/gamma_c_d_ss))^(1/sigma_L))(((((((1-g_r)/lambda_d_ss)(mu_z_ss^(-alpha))((((1-alpha)(((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss))))^(-alpha)))-(((1-omega_i)(gamma_i_d_ss^eta_i))+(omega_igamma_i_mi_ss^eta_i))(1-((1-delta)/mu_z_ss))(1/(((1-alpha)(((mu_z_ssgamma_i_d_ss-beta*(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss)))))))/((((1-omega_c)gamma_c_d_ss^eta_c)+(omega_cgamma_c_mc_ss^eta_c))))^(-1/sigma_L)))^(sigma_L/(1+sigma_L)))))/lambda_d_ss; // Equation (SS10)
#k_ss=H_over_k_ss
H_ss;
#y_ss=1/lambda_d_ss
(mu_z_ss)^(-alpha)(H_over_k_ss)^alphaH_ss;
#g_ss=g_ry_ss;
#q_ss=(A_q/((1-tau_k_ss)psi_z_ss(R_ss-1)))^(1/sigma_q);
#i_ss=(1-(1-delta)/mu_z_ss)k_ss;
#x_tilda_ss=(omega_c
(gamma_c_mc_ss^eta_c)
((((((((1-g_r)/lambda_d_ss)(mu_z_ss^(-alpha))((((1-alpha)(((mu_z_ssgamma_i_d_ss-beta*(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss))))^(-alpha)))-(((1-omega_i)(gamma_i_d_ss^eta_i))+(omega_igamma_i_mi_ss^eta_i))(1-((1-delta)/mu_z_ss))(1/(((1-alpha)(((mu_z_ssgamma_i_d_ss-beta*(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss)))))))(((((((1-tau_y_ss)(1/lambda_w)((((1/(lambda_d_ss((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))/(1+tau_w_ss))/A_L)^(1/sigma_L)))(((((mu_z_ss-betab)/((1+tau_c_ss)(mu_z_ss-b)))/gamma_c_d_ss))^(1/sigma_L))(((((((1-g_r)/lambda_d_ss)(mu_z_ss^(-alpha))((((1-alpha)(((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss))))^(-alpha)))-(((1-omega_i)(gamma_i_d_ss^eta_i))+(omega_igamma_i_mi_ss^eta_i))(1-((1-delta)/mu_z_ss))(1/(((1-alpha)(((mu_z_ssgamma_i_d_ss-beta*(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss)))))))/((((1-omega_c)gamma_c_d_ss^eta_c)+(omega_cgamma_c_mc_ss^eta_c))))^(-1/sigma_L)))^(sigma_L/(1+sigma_L)))))/((((1-omega_c)gamma_c_d_ss^eta_c)+(omega_cgamma_c_mc_ss^eta_c)))))+omega_i(gamma_i_mi_ss^eta_i)(((1-((1-delta)/mu_z_ss))((1/(((1-alpha)(((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss)))))(((((((1-tau_y_ss)(1/lambda_w)((((1/(lambda_d_ss((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))/(1+tau_w_ss))/A_L)^(1/sigma_L)))(((((mu_z_ss-betab)/((1+tau_c_ss)(mu_z_ss-b)))/gamma_c_d_ss))^(1/sigma_L))(((((((1-g_r)/lambda_d_ss)(mu_z_ss^(-alpha))((((1-alpha)(((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss))))^(-alpha)))-(((1-omega_i)(gamma_i_d_ss^eta_i))+(omega_igamma_i_mi_ss^eta_i))(1-((1-delta)/mu_z_ss))(1/(((1-alpha)(((mu_z_ssgamma_i_d_ss-beta*(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta)))/(alphamu_z_ss(((1/(lambda_d_ss*((1/(1-alpha))^(1-alpha))((1/alpha)^alpha)((((mu_z_ssgamma_i_d_ss-beta(1-delta)gamma_i_d_ss))/((1-tau_k_ss)beta))^alpha)))^(1/(1-alpha)))/(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta)))((nu_ss(((mu_ss/mu_z_ss)mu_z_ss-tau_k_ssbeta)/((1-tau_k_ss)beta))+1-nu_ss)))))))/((((1-omega_c)gamma_c_d_ss^eta_c)+(omega_cgamma_c_mc_ss^eta_c))))^(-1/sigma_L)))^(sigma_L/(1+sigma_L)))))))); // Equation (SS15)
#m_bar_ss=nu_ss
w_bar_ss
H_ss+q_ss;
#c_m_ss= omega_cgamma_c_mc_ss^eta_cc_ss;
#i_m_ss=omega_igamma_i_mi_ss^eta_ii_ss;
#y_STAR_ss=omega_cgamma_c_mc_ss^eta_cc+omega_igamma_i_mi_ss^eta_ii_ss;

//1/--------------- Phillips Curve
pi-pi_bar_c=(beta/(1+kappa_dbeta))(pi(+1)-rho_pi_bar_cpi_bar_c)+(kappa_d/(1+kappa_dbeta))(pi(-1)-pi_bar_c)
-((kappa_d
beta*(1-rho_pi_bar_c))/(1+kappa_dbeta))pi_bar_c+(((1-xi_d)(1-betaxi_d))/(xi_d*(1+kappa_dbeta)))(mc+lambda_d);

//2/--------------- Real marginal cost of the intermediate firms
mc=alphar_k+(1-alpha)(w_bar+R_f)-epsilon;

//3/--------------- Real rental rate of capital
r_k=mu_z+w_bar+R_f+H-k;

//4/--------------- Gross effective nominal rate of interest paid by firms
//# denomRf=nu_ssR_ss+1-nu_ss;
R_f=(nu_ss
R_ssR(-1))/(nu_ssR_ss+1-nu_ss);

//5/--------------- Phillips curve for the imported consumption goods
(pi_m_c-pi_bar_c)(1+kappa_m_cbeta)=beta*(pi_m_c(+1)-rho_pi_bar_cpi_bar_c)+kappa_m_c(pi_m_c(-1)-pi_bar_c)-kappa_m_cbeta(1-rho_pi_bar_c)pi_bar_c+((1-xi_m_c)(1-betaxi_m_c)(mc_m_c+lambda_m_c)/xi_m_c);

//6/--------------- Phillips curve for the imported investment goods
(pi_m_i-pi_bar_c)(1+kappa_m_ibeta)=beta*(pi_m_i(+1)-rho_pi_bar_cpi_bar_c)+kappa_m_i(pi_m_i(-1)-pi_bar_c)-kappa_m_ibeta(1-rho_pi_bar_c)pi_bar_c+((1-xi_m_i)(1-betaxi_m_i)(mc_m_i+lambda_m_i)/xi_m_i);

//7/--------------- Marginal cost for firms importing consumption goods
mc_m_c=-mc_x-gamma_x_STAR-gamma_mc_d;

//8/--------------- Marginal cost for firms importing investment goods
mc_m_i=-mc_x-gamma_x_STAR-gamma_mi_d;

But the error message as following:

Error using print_info (line 48)
The jacobian matrix evaluated at the steady state is complex

Error in check (line 51)
print_info(info, options_.noprint);

Error in BARRIE_estim_13Q2v4 (line 1132)
check;

Error in dynare (line 132)
evalin(‘base’,fname) ;

According to the error message, I found the problem is info(1), which is “the model doesn’t determine the current variables ‘…’ uniquely”
I was trying to figure the problem through previous related topics in this forum, unfortunately, I am still stuck. I noticed a future version of dynare can identify problem more clearly, if it is possible, can any dynare experts help me identify it? Any help or suggestions will be much appreciated!

Helen
2013Q2v2.xls (214 KB)
data_2013Q2v2.m (619 Bytes)