Dynare forums

I have a problem with the steady state as I get: "Impossible to find the steady state. Either the model doesn't have a steady state, there are an infinity of steady states, or the guess values are too far from the solution."
The steady state file I have produces the steady state values. If I use those values in each equation of the .mod file then each equation is satisfied and yet I get the above error message. Any insights?

Thank you

D

When you put

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resid;

before steady, you will see that you steady state computation is inconsistent with the equations you entered as

Residuals of the static equations:
Equation number 23 : -0.805
Equation number 46 : -0.0161

These two equations are problematic. Check them and the associated steady state computation

Thank you for your response. The equations were actually satisfied. I just forgot to initialize B and it seems the program used the value zero automatically. Thank you again

Yes, as documented in the manual, all initial values not explicitly set at assumed to be 0. You can change this default behavior by using the

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all_values_required

option of initval. Is there any reason you don't use a steady_state-file or steady_state_model-block if you have an analytical steady state?