''The steadystate file did not compute the steady state'' and resid(1) questions

Steady state
1

Hi, I have trouble in compiling dynare .mod file and it’s my first time to deal with it so that I am frustrated…can anyone help me? :frowning:

The question I met is that the result of running dynare shows: ‘‘The steadystate file did not compute the steady state’’ with only one residual stays non-zero; it seems common, however, the steady state value did solve the equation which shows non-zero residual.

The equation that shows non-zero residual is: G + (tr_p + tr_i + tr_i + tr_e) = tax;
However, the steady state values are as follows G=-0.0693, tax-(tr_p+tr_i+tr_r+tr_e) =-0.0693 andY-(c_p+c_i+c_r+c_e)-del_k*(k_p+k_e)=-0.0693, which are derived from a matlab file whose parameters and steady state solution are the same as what in _steadystate.m file.

If the steady state value solve the equation listed in mod file, the residual of that equation will be zero, isn’t it?

I am so frustrated and I would be very glad to get any help or hint you can give me. :frowning:

2

As a first step, please see Residuals of SS equations in Bayesian estimation

3

Thanks so much for replying! But I am confusing what you mean “in the correct order”?

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I have modified the _steadystate.m file to fit the form of NK_baseline_steady_state.m; however, I met another problem:

the amount of the equations whose residual stay non-zero of modified _steadystate.m is unequal to that of pre-modified _steadystate.m, it increases!

I wonder the reason why it happens. In fact, I just change the file’s name and copy my steady state formula into the “Enter model equations here” area, all the other parts stay unchanged.

I define some constants in pre-modified and modified _steadystate.m which are consists of parameters defined in .mod file in order to compute the steady state value easily, and these constants don’t exist in .mod file. Is it the reason?

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By the way, the pre-modified _steadystate.m are compiled according to the _steadystate.m from Iacoviello(2013) Financial business cycles which works. Does the previous form of my _steadystate.m file cause this kind of error message?

Thanks for your replying. :slight_smile:

4

Here I try a different way to declare the steady state in which I add a steady_state_model; end; block and fill out all the formulas listed in the _steadystate.m file.

And unfortunately, it shows the same result that one of the residuals stay non-zero while the value of that equation is actually zero by computing by _steadystate.m file value.

I am confident of the steady state formula which I solve by hand, so I really need a help…:frowning:

5

If you think your steady state file is correct, then your model must be wrong. The values returned by the steady state file/steady_state_model-block are inconsistent with the entered equations.

6

Thank you for your replying.

I have solved this problem after I change my model setting!

I guess that the mistake happens may result from an inappropriate setting for defining a steady state Y in my old mod file: I define a Yss in my mod file, and let Yss equal to Y in the _steadystate.m file.

Leave a reference for someone who has the same problem with me! But I am not sure. :stuck_out_tongue_winking_eye: