Why one of my residulas is same before and after running it?

Stochastic simulations Semistructural Modeling
1

Hi all,

I am trying to simulate my model. I have 16 equations, and one residual of them is the same before and after finding steady command.
I put resid command before and after steady command. One resid value given initial values is same as the resid value from best-fitting results. Before steady command was implemented, the resid of the equation was 37.81, and after steady command was executed, the resid is 37.81.
Can you give me a clue why this happens?
Thank you

2

Without seeing the codes it is impossible to tell. But it may indicate that the program was unable to improve upon the residuals. This may happen in models with unit roots, which have infinitely many steady states and the Newton algorithm may therefore not find a direction for improvement.