Dynare forums

Dear all,
I am using DYNARE 4.04 version for solving a model based on Galì and Monacelli (2005) with a tradable (flex prices) and non tradable sector (sticky prices).
When I run the code (here attached) I got the following error messages:
??? Error using ==> steady_
STEADY: convergence problems
Error in ==> C:\DYNARE 4.0.4\matlab\steady.m
On line 52 ==> steady_;
Error in ==> C:\DYNARE 4.0.4\matlab\kouakou_short.m
On line 160 ==> steady;
Error in ==> C:\DYNARE 4.0.4\matlab\dynare.m
On line 102 ==> evalin('base',fname) ;

I do not get any steady state result. What could be the problem? I read all the FAQs, the guide and the manual, but I couldn't solve it alone.
Please help me, it is really important.
Thank you.

Hi,

It looks like your model is misspecified. When all values are equal to zero, the residual of the equation 7 (defining rr) is not null: at steady state, rr = -rho_ppi. Maybe you meant rr = -rho_ppi * (...).

Best,