Dynare forums

Dear All,

My code is not running and I have no idea why. I keep getting the message 'configuring Dynare' and what seems like some program activity but no results are generated. Can anyone please tell me why this may be happening? Please find my code attached.

Thanks!

Did you maybe name your mod-file "dynare.mod"?

Dear Dr. Pfeifer,

Many thanks for your prompt reply. I figured out what was wrong based on your response. It was related to the naming of the files.

I have done a bit more work since then and I am still experiencing troubles unfortunately.

Dynare is unable to find the steady state, and I think it may be based on my guess values and equations. I was wondering what the next best option was as opposed to giving actual values? I am trying to replicate existing results from the model with the least number of equations. The authors seem to use fsolve for the steady state of some of the variables. I'm not sure whether this is feasible with Dynare, i.e., fsolve for some variables and equations for others?

Please find the mod-file attached.


Many thanks.

The problem with finding a steady state is often not with the actual steady state finding, but rather that often the underlying equations are still entered incorrectly so that no steady state exists. In that case, Dynare will of course be unable to find a steady state.
You should thus try to check the equations with the biggest residuals. Often there are still mistakes. Moreover, it is usually best to start with a model not already with exp() substitution, because a missing exp() somewhere will make steady state finding not work correctly.
To answer your initial question: using a steady state file as in the NK_baseline.mod in the Dynare examples folder allows to call fsolve.

Thank you so much Dr. Pfeifer.