Dynare forums

Hi,
I am working on a model of financial accelerator for an open economy. I have built up my model and when i try to run it , i always get the error, CONVERGENCE PROBLEMS. i can't know how to deal with that . Please help !

Here is the file and data.

Thanks

same problem...
someone pls help

Hi, Dynare fails in finding the steady state of your model. You may try to give more sensible values to the endogenous variables in the initval block. These values are used to initialize the newton like routine called by Dynare to compute the steady state, so they have to be not too far from the unknown steady state. But the best way is to provide an analytical expression of the steady state (writing a _steadystate.m file, you will find some examples on the forum).

Best,
Stéphane.

in the initval block i gave the STEADY STATE values! i calculated them in the mod file (recursively)
these are the variable_ss parameters
so?

and, of course, i cheked them in an other .mod
here

If I rewrite the last six equations as:

Code: Select all


  eta_I = exp(eps_I)*eta_I(-1)^rho_I;
  eta_b = exp(eps_b)*eta_b(-1)^rho_b;
  eta_a = exp(eps_a)*eta_a(-1)^rho_a;
  eta_l = exp(eps_l)*eta_l(-1)^rho_l;
  eta_g = exp(eps_g)*eta_g(-1)^rho_g;
  pit = exp(eps_pit)*pit(-1)^rho_pit;



I get the steady state... But there is a problem with BK conditions. I did not try to change the values of the parameters.

Stéphane.

thanks a lot