Unable to find steady state even though all residuals are very close to zero

Steady state
1

Dear all,

I’m relatively new to Dynare and tried to code a simple model with a firm that produces output and an agent who owns the firms and consumes the output.

Unfortunately, the programme cannot find a steady state even though the residuals of the static equations are very close to zero. I checked my model again and tried to increase the precision as well as the iteration number, but nothing really helped.

What am I missing?

Thanks in advance for your help!

Simple_version.mod (1.7 KB)
Simple_version.log (866 Bytes)

2

Are you sure your model even has a well-defined unique steady state? Why is there a price level showing up? Usually, such models work for all price levels.