Dynare forums

Hi!

My model is indeed too long: 46 equations!
After several attempts I am not able to find the "right" initial values to compute the steady state.
How can I proceed?
I attach the model with the error messages.
Thank you for your help.
Amedeo


var y, ys, yu, yc, lambda_s, lambda_u, lambda_c, lambda_gu, lambda_gc, prs, ws, ns, rs, ks, pru, d, wu, nu, ru, ku, prc, pc, wc, nc, rc, kc, e, mdem, msu, ml, kappa, cl, cc, g, xs, xu, xc, R, Rs, Ru, Rc, prg, wu_g, wc_g, nu_g, nc_g;
varexo es, eu, ec, em;

parameters sigma_s, sigma_u, sigma_c, sigma_m, gamma, delta, zeta, tau_s, s, vartheta, acca, eta_l, eta_c, eta_m, q1, q2, q3, psi, varpi, rho, rho_u, rho_c, varkappa, Bu, Bc, tau_n, tau_k, omega_s, omega_u, omega_c, effe, elle, psi_gu, psi_gc;

sigma_s = 0.95;
sigma_u = 0.95;
sigma_c = 0.95;
sigma_m = 0.60;
gamma = 1/3;
delta = 1/4;
zeta = 1/5;
tau_s = 0.2;
s = 0.33;
vartheta = 0.4;
acca = 0.8;
rho = 0.99;
rho_u=0.9;
rho_c=0.85;
eta_l = 0.4;
eta_c = 0.05;
eta_m = 0.5;
q1 = 0.5;
q2 = 0.1;
q3 = 0.1;
psi = 3;
varpi = 2;
varkappa = 3.5;
Bu = 1.85;
Bc = 4;
tau_n = 0.4;
tau_k = 0.3;
omega_s = 0.09;
omega_u = 0.09;
omega_c = 0.09;
effe = 1/2;
elle =1/2;
psi_gu = 3;
psi_gc = 3;

model;
y = ys+yu+yc;//0,653
ys = lambda_s*((ks)^(gamma))*((ns)^(1-gamma));//0.47 con k=0.94
yu = lambda_u*((ku)^(delta))*((nu)^(1-delta));//0.1
yc = lambda_c*((kc)^(zeta))*((nc)^(1-zeta));//0,083
lambda_s = 0.05+sigma_s*lambda_s(-1)+es;//1
lambda_u = 0.05+sigma_u*lambda_u(-1)+eu;//0.8
lambda_c = 0.05+sigma_c*lambda_c(-1)+ec;//0,7
prs = ((1-tau_s)*ys-(1+s)*ws*ns-rs*ks);//0.14
pru = d*(yu-wu*nu-ru*ku)+(1-d)*((1-tau_s)*yu-(1+s)*wu*nu-ku*(ru+vartheta));//0.006
prc = e*(pc*yc-wc*nc-rc*kc);//-0.008
ml = mdem-msu;//0.36
kappa=ml/prc;//-44,39
msu = sigma_m*msu(-1)+acca*(ys+yu)+em;//1.14
cl+pc*cc+xs+xu+xc+mdem = mdem(-1)+(1-tau_n)*ws*ns+(1-tau_k)*rs*ks+d*(wu*nu+ru*ku)+(1-d)*((1-tau_n)*wu*nu+(1-tau_k)*ru*ku)+e*(wc*nc+rc*kc)+(1-e)*wc*nc+prs+pru+(1-kappa)*prc;
xs = ks(+1)-(1-omega_s)*ks;//0.08
xu = ku(+1)-(1-omega_u)*ku;//0.0027
xc = kc(+1)-(1-omega_c)*kc;//0,0027
d = 1-((wu_g)/((1/lambda_gu)+wu_g));//0.25
e = 1-((wc_g)/((1/lambda_gc)+wc_g));//0,68
R = Rs+Ru+Rc;
Rs = tau_s*ys+s*ws*ns+tau_n*ws*ns+tau_k*rs*ks;//0.17
Ru = (1-d)*(tau_s*yu+s*wu*nu+vartheta*ku+tau_n*wu*nu+tau_k*ru*ku);//0.05
Rc = (1-e)*(kc-wc*nc);//-0,01
lambda_gu = Ru/((nu_g)^(effe));
lambda_gc= Rc/((nc_g)^(elle));
wu_g = lambda_gu*effe*((nu_g)^(effe-1))/(1+s);//0.18
wc_g = lambda_gc*elle*((nc_g)^(elle-1))/(1+s);//0.18
prg = R-wu_g-wc_g;//-0,15
g = prg;//-0,15
ws = ((1-tau_s)*lambda_s*((ks)^(gamma))*(1-gamma)*((ns)^(-gamma)))/(1+s);//0.26
rs = (1-tau_s)*lambda_s*((ks)^(gamma-1))*(gamma)*((ns)^(1-gamma));//0.13
wu = (lambda_u*((ku)^(delta))*(1-delta)*((nu)^(-delta)))*(1-tau_s+d*tau_s)/(1+s-d*s);//0.30
ru = lambda_u*((ku)^(delta-1))*(delta)*((nu)^(1-delta))*(1-(1-d)*tau_s)-vartheta*(1-d);//ku=0,03 e ru=0,26
wc/pc = lambda_c*((kc)^(zeta))*(1-zeta)*((nc)^(-zeta));//0.34
rc/pc = lambda_c*((kc)^(zeta-1))*(zeta)*((nc)^(1-zeta));//kc=0,03 e rc=0,39
eta_l*(1/(cl)^(q1))/((ns)^(psi))=1/((1-tau_n)*ws);//cl=2,78
eta_l*(1/(cl)^(q1))/((nu)^(varpi))*Bu=1/((1-d)*(1-tau_n)*wu+d*wu);
eta_l*(1/(cl)^(q1))/((nc)^(varkappa))*Bc=1/wc;
eta_c*(1/(cc)^(q2))=eta_l*(1/(cl)^(q1))*pc;//cc=0,00000063403
eta_m*(1/(mdem)^(q3))=eta_l*(1/(cl)^(q1))+rho*eta_l*(1/(cl(+1))^(q1));//m=1,5
((nu_g)^(psi_gu))=eta_l*(1/(cl)^(q1))*((1-tau_n)*wu_g);
((nc_g)^(psi_gc))=eta_l*(1/(cl)^(q1))*((1-tau_n)*wc_g);
-eta_l*(1/(cl)^(q1))+rho*eta_l*(1/(cl(+1))^(q1))*((1-omega_s)+(1-tau_k)*rs(+1)) = 0;
-eta_l*(1/(cl)^(q1))+rho_u*eta_l*(1/(cl(+1))^(q1))*((1-omega_u)+d(+1)*ru(+1)+(1-d(+1))*(1-tau_k)*ru(+1)) = 0;//d=0,25
-eta_l*(1/(cl)^(q1))+rho_c*eta_l*(1/(cl(+1))^(q1))*((1-omega_c)+e(+1)*rc(+1)) = 0;//e=0,68
y=cc+cl+xs+xu+xc+g;

end;

steady_state_model;



lambda_s=1;
lambda_u=1;
lambda_c=1;
d=0.25;
e=0.68;
rs=((1/rho)-(1-omega_s))/(1-tau_k);//0.14
ru=((1/rho_u)-(1-omega_u))/(1-tau_k+d*tau_k);//0.19
rc=(((1/rho_c)-(1-omega_c))/e);//0,15
ws=((1-tau_s)*lambda_s*(1-gamma)*((1+s)^(gamma))*((gamma/(1-gamma))^(gamma))*((rs)^(-gamma)))^(1/1-gamma);//0.84
ns=1;
ks=4.03;
cl=((((ns)^(psi))*((1-tau_n)*ws))/eta_l)^(-1/q1);
wu=lambda_u*(1-delta)*(delta/(1-delta))*((1-(1-d)*tau_s)-vartheta*(1-d)/(1-tau_s+d*tau_s)/(1+s-d*s))^(delta)*((ru)^(-delta))*((1-tau_s+d*tau_s)/(1+s-d*s))^(1/1-delta)+0.098256;//0.24
nu=(eta_l*(1/(cl)^(q1))/Bu)*((1-d)*(1-tau_n)*wu+d*wu)^(1/varpi);
ku=nu*wu/ru*(delta/(1-delta))*((1-(1-d)*tau_s)-vartheta*(1-d)/(1-tau_s+d*tau_s)/(1+s-d*s));
wc=1.7;
nc=(((eta_l*(1/(cl)^(q1))/Bc)*wc)^(1/varkappa));
kc=nc*wc/rc*((zeta)/(1-zeta));
ys = lambda_s*((ks)^(gamma))*((ns)^(1-gamma));
yu = lambda_u*((ku)^(delta))*((nu)^(1-delta));
yc = lambda_c*((kc)^(zeta))*((nc)^(1-zeta));
prs = ((1-tau_s)*ys-(1+s)*ws*ns-rs*ks);
pru = d*(yu-wu*nu-ru*ku)+(1-d)*((1-tau_s)*yu-(1+s)*wu*nu-ku*(ru+vartheta));
prc = e*(2*yc-wc*nc-rc*kc);
y=ys+yu+yc;
xs = omega_s*ks;
xu = omega_u*ku;
xc = omega_c*kc;
msu=(acca*(ys+yu)+em)/(1-sigma_m);
Rs = tau_s*ys+s*ws*ns+tau_n*ws*ns+tau_k*rs*ks;
Ru = (1-d)*(tau_s*yu+s*wu*nu+vartheta*ku+tau_n*wu*nu+tau_k*ru*ku);
Rc = (1-e)*(kc-wc*nc);
R = Rs+Ru+Rc;
mdem=eta_m*(eta_l*(1/(cl)^(q1))+rho*eta_l*(1/(cl)^(q1)))^(1/q3);
ml = mdem-msu;
kappa = ml/prc;
lambda_gu=1;
lambda_gc=1;
nu_g=((Ru/lambda_gu)^(1/effe));
nc_g=((Ru/lambda_gc)^(1/elle));
wu_g = lambda_gu*effe*((nu_g)^(effe-1))/(1+s);
wc_g = lambda_gc*elle*((nc_g)^(elle-1))/(1+s);
prg = R-wu_g-wc_g;
g = prg;
cc=y-cl-xs-xu-xc-g;
pc=(((1-tau_n)*ws*ns+(1-tau_k)*rs*ks+d*(wu*nu+ru*ku)+(1-d)*((1-tau_n)*wu*nu+(1-tau_k)*ru*ku)+e*(wc*nc+rc*kc)+(1-e)*wc*nc+prs+pru+(1-kappa)*prc-cl-xs-xu-xc)/((eta_l/eta_c)*(1/(cl)^(q1)))^(-1/q2))^(q2/(q2-1));


end;

steady;

shocks;
var es = 0.009^2;
var eu = 0.009^2;
var ec = 0.009^2;
var em = 0.009^2;
end;

stoch_simul(irf=12, hp_filter=1600, order=1);


Configuring Dynare ...
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Local state space iteration (second order).
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.
[mex] Quasi Monte-Carlo sequence (Sobol).
[mex] Markov Switching SBVAR.

Starting Dynare (version 4.3.2).
Starting preprocessing of the model file ...
Found 46 equation(s).
Evaluating expressions...done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives:
- order 1
Processing outputs ...done
Preprocessing completed.
Starting MATLAB/Octave computing.





Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0.88688
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : -1.9309
Equation number 15 : 0
Equation number 16 : 0
Equation number 17 : 0
Equation number 18 : 0.12675
Equation number 19 : 0.55675
Equation number 20 : 0
Equation number 21 : 0
Equation number 22 : 0
Equation number 23 : 0
Equation number 24 : 0
Equation number 25 : 3.4668
Equation number 26 : 0
Equation number 27 : 0
Equation number 28 : 0
Equation number 29 : 0
Equation number 30 : 0.28726
Equation number 31 : 0.037701
Equation number 32 : -0.030577
Equation number 33 : -0.064871
Equation number 34 : 26.871
Equation number 35 : 6.1941
Equation number 36 : -1.2458
Equation number 37 : 45.5594
Equation number 38 : 8.8235
Equation number 39 : 0.0041583
Equation number 40 : -0.61993
Equation number 41 : -2.3698
Equation number 42 : -2.3698
Equation number 43 : 0
Equation number 44 : 0
Equation number 45 : 0
Equation number 46 : 0


Error using print_info (line 55)
The steadystate file did not compute the steady state

Error in resid (line 116)
print_info(info,options_.noprint)

Error in steady (line 90)
resid;

Error in ame4 (line 339)
steady;

Error in dynare (line 120)
evalin('base',fname) ;

You can try do calculate the steady state according to your equations by hand,though it may take a lot of time.Residuals of the static equations should all be 0.
The other way is linearing your model by hand and setting all the initial value 0.
My English is poor but I hope this suggestion can help you.
Thank you.