Hi ,

I

internacional.mod (753 Bytes)

This mean that Dynare can’t find the steady state value for your model. Themost frequent reasons are

- there is one or several unit root in your model
- there is an error in the equations that you typed in.
- you forgot ot give initval values for one or several variables.

If you can compute by hand the steady state given the parameters of the model, you can directly enter these formulas in the initval block

Best

Michel

Michel,

Thank you for the answer. I’d had change my initial values and now have other error. Maybe the order of my equations when i typed in dynare are generating some problems, is there a determined order to type it and run the programm?

Thanks,

Maria.

No, there is no required order. From a numerical point of view, computing the steady state is “simply” solving a set of nonlinear equations. For that Dynare uses a modified Newton type method with line search.

Kind regards

Michel