The steady state contains NaN or Inf

Dynare contributions and examples
1

Dear all,

I am building a small open economy DSGE model for monetary and fiscal policy interactions. I have an NAN errors in my model which I can not solve even changing the parameters as the instructions tell me. Please, could you give me an advice how to solve this problem. I am attaching also the mod. file. After running you will see that there are errors in the 17-21 equations. Even changing the 18-21 equations to AR(1) processes, the problem occurs in the 17th. Thank you very much beforehand.

Best Regards

Sargis
Paper2.mod (5.37 KB)

2

You forgot to set

3

[quote=“jpfeifer”]You forgot to set

Dear jpfeifer,

delta1 is there in the Parameters part last component of the second line and in the calibration part it is equal to 2.

Best Regards

Sargis

4

No, you are setting dleta1, not delta1. Correct the typo.

5

Dear jpfeifer,

Even correcting that typo, still I have Nan or Inf Error.

6

That cannot be. See the attached file.
Paper2.mod (5.37 KB)