The steadystate file did not compute the steady state problem

Steady state
1

Dear all, I received the following error message when trying to solve the steady-state of a DSGE model.
I am new to Dynare. Can anybody help me with this problem?
The code can be found in attachment.
Thank you in advance.

error print_info (line 32)
The steadystate file did not compute the steady state

error steady (line 102)
print_info(info,options_.noprint, options_);

error test.driver (line 439)
steady;

error dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;

testttt.mod (7.5 KB)

2

In

Z              =     ((1-T_M)*p_M*((1-(1-T_L )*(deltaa*MC/L)/L^thetaa-alfaa*MC*deltaa_k/r-0.2)/(-LAMDA*mua*((1-er)*log(1-er)+er)))/(1-(1-T_L )*(deltaa*MC/L)/L^thetaa-alfaa*MC*deltaa_k/r-0.2))^(1/(1+va))  ;

you have a division by something that is multiplied by

((1-er)*log(1-er)+er)

But the latter evaluates to 0, resulting a division by 0. You can use F9 in Matlab to sequentially execute the parameter definitions and the steady state computations to see this.

1 Like
3

Thanks alot.