Two boundary problem and SS

Dynare help (legacy posts)
1

Hello,

I am currently running a deterministic simulation over my model. This simulation is supposed to start and end in two points, none of which constitutes a steady state of the model.

I am omitting the command steady() and providing initial and final conditions (see the code attacched).

Nevertheless, when launching the simulation I run into this error:

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

Can anyone explain me why?
RamseyInitial.m (8.05 KB)
RamseySS.m (8.03 KB)
DynamicPolicy.mod (22.4 KB)

2

Because you have a

command, which checks the Blanchard-Kahn conditions. These are a local property obtained by a first order approximation around the steady state, which Dynare tries to compute then.