I am new to dynare and wanted to use it for a little project. I set up a DSGE model to analyze fiscal policy measures (Taxes, subsidies) on the welfare of homeowners and renters under a shock to the real interest rate.
However, my code wasn’t working at all and I got “Impossible to find the steady state. Either the model doesn’t have a steady state, there are an infinity of steady states, or the guess values are too far from the solution”. Then I tried to go back to the basics of the model so without any of the extensions but still get “The steady state contains NaN or Inf” (see attached) .
Can anyone please tell me whether its the model or the guesses? ttt.mod (1.2 KB)
Thanks so much in advance!