Hello, I was trying to run a simple RBC model with Govt. In this model, Govt taxes labor and capital income with time varying rates.
I have written the steady state block. But still, the dynare is giving me the error:
Residuals of the static equations:
Equation number 1 : 0.005531
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : -0.0050454
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : -0.058171
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
error: The steadystate file did not compute the steady state.
Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : -0.0517
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
error: The steadystate file did not compute the steady state
I do not know the model, but the definition of the steady state for D is weird. I do not understand how it can be an arbitrary fraction d_ss, equal to .5 in your calibration, of output Y. If I ready equation 9 correctly, I would replace:
D = d_ss*Y;
by
D = (tau_k*R*K + tau_l*w*N-G)/r;
and also replace d_ss in the two last equations by
STEADY_STATE(D)/STEADY_STATE(Y)
With these modifications the mod file runs without trouble.