The steady state contains NaN or Inf of two country NK-DSGE model

Hello, I faced a problem when run a two country NK-DSGE model,the error is “The steady state contains NaN or Inf”.I don’t know how to solve it .Can anybody help me to find what’s the problem that i missed? Thank you very much! The code is attached bellow.
tpu1.mod (8.3 KB)
And the error message is:
Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : -2.7964e-05
Equation number 4 : -4.4535e-05
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 5.4083
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : -0.9988
Equation number 12 : -Inf
Equation number 13 : 0
Equation number 14 : -10.9433
Equation number 15 : -5.291
Equation number 16 : 0
Equation number 17 : 0
Equation number 18 : 0
Equation number 19 : 0
Equation number 20 : 0
Equation number 21 : 0.14614
Equation number 22 : 0.15924
Equation number 23 : 0
Equation number 24 : 0
Equation number 25 : 9.2567
Equation number 26 : 0
Equation number 27 : 0
Equation number 28 : 0
Equation number 29 : 0
Equation number 30 : 0
Equation number 31 : 0
Equation number 32 : -7.5976
Equation number 33 : -3.032
Equation number 34 : 0
Equation number 35 : 0
Equation number 36 : 0
Equation number 37 : 0
Equation number 38 : 0
Equation number 39 : -5.0405e-05

Residuals of the static equations:

Equation number 1 : NaN
Equation number 2 : NaN
Equation number 3 : NaN
Equation number 4 : NaN
Equation number 5 : NaN
Equation number 6 : NaN
Equation number 7 : NaN
Equation number 8 : NaN
Equation number 9 : NaN
Equation number 10 : NaN
Equation number 11 : NaN
Equation number 12 : NaN
Equation number 13 : NaN
Equation number 14 : NaN
Equation number 15 : NaN
Equation number 16 : NaN
Equation number 17 : NaN
Equation number 18 : NaN
Equation number 19 : NaN
Equation number 20 : NaN
Equation number 21 : NaN
Equation number 22 : NaN
Equation number 23 : NaN
Equation number 24 : NaN
Equation number 25 : NaN
Equation number 26 : NaN
Equation number 27 : NaN
Equation number 28 : NaN
Equation number 29 : NaN
Equation number 30 : NaN
Equation number 31 : NaN
Equation number 32 : NaN
Equation number 33 : NaN
Equation number 34 : NaN
Equation number 35 : NaN
Equation number 36 : NaN
Equation number 37 : NaN
Equation number 38 : NaN
Equation number 39 : NaN

错误使用 print_info (line 90)
The steady state contains NaN or Inf

出错 steady (line 104)
print_info(info,options_.noprint, options_);

出错 tpu1 (line 627)
steady;

出错 dynare (line 235)
evalin(‘base’,fname) ;

Hi Whj,

you did not set an initial value for x21. Include x21=x21s; and use the solve algorithm steady(solve_algo=1,maxit=1000); then it should work.

Best

1 Like

Thank you so much for replying to me. It is indeed my negligence not to give the initial value of x21. I have corrected this error and used steady(solve_algo=1,maxit=1000) after the resid; but I received a new error message. The error message is:Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : -2.7964e-05
Equation number 4 : -4.4535e-05
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 5.4083
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : 0
Equation number 16 : 0
Equation number 17 : 0
Equation number 18 : 0
Equation number 19 : 0
Equation number 20 : 0
Equation number 21 : 0.14614
Equation number 22 : 0.15924
Equation number 23 : 0
Equation number 24 : 0
Equation number 25 : 9.2567
Equation number 26 : 0
Equation number 27 : 0
Equation number 28 : 0
Equation number 29 : 0
Equation number 30 : 0
Equation number 31 : 0
Equation number 32 : 0
Equation number 33 : 0
Equation number 34 : 0
Equation number 35 : 0
Equation number 36 : 0
Equation number 37 : 0
Equation number 38 : 0
Equation number 39 : -5.0405e-05

SOLVE: maxit has been reached

Residuals of the static equations:

Equation number 1 : 0.0056369
Equation number 2 : 0.006085
Equation number 3 : -0.00016418
Equation number 4 : -0.010017
Equation number 5 : 0.0058047
Equation number 6 : -0.0023026
Equation number 7 : -4.0456e-07
Equation number 8 : 8.7332e-05
Equation number 9 : -4.6954e-05
Equation number 10 : -0.00069218
Equation number 11 : 0.0030438
Equation number 12 : 0.0014499
Equation number 13 : -0.0018954
Equation number 14 : 3.4245e-05
Equation number 15 : 0.00020745
Equation number 16 : -0.0032078
Equation number 17 : -0.0048767
Equation number 18 : -0.0012209
Equation number 19 : 0
Equation number 20 : 0.00026919
Equation number 21 : 0.012801
Equation number 22 : -0.0012262
Equation number 23 : 0.0039978
Equation number 24 : 0.0065509
Equation number 25 : -8.6438e-05
Equation number 26 : 0.0018224
Equation number 27 : -7.2993e-05
Equation number 28 : -0.00043544
Equation number 29 : -0.00051575
Equation number 30 : -0.00052093
Equation number 31 : 0.0003768
Equation number 32 : 5.6174e-05
Equation number 33 : 0.00021452
Equation number 34 : 0.0076781
Equation number 35 : -0.0046722
Equation number 36 : -0.00014407
Equation number 37 : 0
Equation number 38 : 0.00056764
Equation number 39 : -0.00058799

错误使用 print_info (line 83)
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

出错 steady (line 104)
print_info(info,options_.noprint, options_);

出错 tpu1 (line 629)
steady;

出错 dynare (line 235)
evalin(‘base’,fname) ;

I don’t know if there is an error in my parameter value, I hope you can give me some pointers.

Best

Weird, for me it works like this. Let me give you the file that worked for me and in case that does not work the steady states it found:

STEADY-STATE RESULTS:

y1 0.204433
c1 0.128795
c11 0.116992
c12 0.0140359
l1 0.142149
k1 0.294006
r1 0.270408
w1 0.559283
i1 0.0735016
lambda1 7.40118
mc1 0.777778
pistar1 1
pi1 1
x11 2.30748
x21 2.96676
in1 0.0204082
tau1 0.3
tpu2 0.5
pr 1.00692
A1 1
y2 0.188911
c2 0.129225
c22 0.116045
c21 0.0139394
l2 0.166953
k2 0.235321
r2 0.260101
w2 0.651758
i2 0.0588302
lambda2 7.44649
mc2 0.9
pistar2 1
pi2 1
x12 4.9167
x22 5.463
in2 0.010101
tau2 0.3
tpu1 0.5
A2 1

tpu1.mod (8.3 KB)

Best

Thank you very much.
I used the mod file that you sent no longer the above error, but the impulse response graph was not displayed in the end. Is the reason for this situation because the residuals of some equations are not zero? Do you know how I should solve this problem?

Best

The problem are explosive simulations. You need to use pruning.

Thank you very much for your reply, Professor. According to your method, I got the impulse response result, but the variance decomposition result of the endogenous variable did not appear in the simulation result. I am looking for the problem in order to solve it.

Best

At higher order, you cannot compute these objects analytically. You need to simulate, e.g.

stoch_simul(order=3,k_order_solver,irf=40,periods=500,pruning);

Also, you set nomoments, suppressing these computations.