The steady state contains NaN or Inf

Dynare contributions and examples
1

Hi Dynare users

I just learned using Dynare recently and I have this problem that drives me crazy. I know, there have been already a lot of posts concerning this subject and some of them helped to some extend. However, I think after considering more or less all of them, I still end up with the following error messages.

Error using print_info (line 80)
The steady state contains NaN or Inf

Error in steady (line 92)
print_info(info,options_.noprint, options_);

Error in Master2 (line 577)
steady;

Error in dynare (line 180)
evalin(‘base’,fname) ;

Can someone see where my mistake is?
Thanks a lot!

2

Use the resid(1);
statement before steady;
I do not understand what you are doing. You say your model is linear using

But then you provide initial values that are clearly different from 0, indicating your model is nonlinear. You need to fix this.

3

Dear Mr. Pfeifer

Thank you for your response! I’m trying to replicate the model developed by Chen, Curdia & Ferrero (2012) (without zero lower bound condition). The linear model is in they’re accessible appendix p. 15 and the steady state conditions on page 13.

I updated my file with resid(1) as you suggested.

4

You are confusing the steady states of the nonlinear model variables, which are provided in the appendix and are used during linearization and the steady states of the linearized variables, which are percentage deviations from steady state.

5

Thank you very much!