Dynare forums

Hi,

I am using Dynare 4.3.0 and I am currently getting the following error:

STEADY: numerical initial values incompatible with the following equations
3

Please check for example
i) if all parameters occurring in these equations are defined
ii) that no division by an endogenous variable initialized to 0 occurs

I have manually calculated and checked the steady states as well as equation 3 and other model equations and find no division by 0 or -ve numbers or any other problems. The non-log version of the model is running fine. But I have been at this for a while and still not getting anywhere, so I was wondering if the problem is with the dynare version I am using?
Or is there something else I am missing? I am attaching the mod file. Can anyone please help?

Your definition of wss makes its value 0; then you try to initialise w to log(wss) which is undefined. If you replace "l" by "lss" in the definition of wss, the model works.
Regards
Donihue

Oh great! Thanks a lot!!