I have been working in a simple RBC model with an externality called “dirty energy” Xt in both Utility and Production functions. I am testing the range of parameters and running the code on Matalb R2022b and Dynare 5.3, however I notice the following warning message below when I run the code. I am afraid it is not producing the expected results because there is a problem for starting the steady state as mentioned below.
I would really appreciate any suggestions to fix the warning messages and/or code, please find the script of the model with tax and with no tax applied to “dirty energy” variable Xt below:
Warning: Some of the parameters have no value (par_sigma) when using
steady. If these parameters are not initialized in a steadystate file
or a steady_state_model-block, Dynare may not be able to solve the
model. Note that simul, perfect_foresight_setup, and
perfect_foresight_solver do not automatically call the steady state
file.
That’s because you have an unused parameter par_sigma-defined in your model.
Warning: Some of the parameters have no value (par_sigma) when using
steady. If these parameters are not initialized in a steadystate file
or a steady_state_model-block, Dynare may not be able to solve the
model. Note that simul, perfect_foresight_setup, and
perfect_foresight_solver do not automatically call the steady state
file.
That’s because you have an unused parameter par_sigma-defined in your model.