*closed*

[xtsong]

the post is deleted

[xtsong]

Update to last post:
Now the problem is clear: the model doesn't have a steady state or infinity of steady states. As the error message:

SOLVE: maxit has been reached

SOLVE: maxit has been reached

SOLVE: maxit has been reached
Error in computing likelihood for initial parameter values
Error using print_info (line 57)
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

Error in initial_estimation_checks (line 69)
print_info(info, DynareOptions.noprint)

Error in dynare_estimation_1 (line 147)
oo_ =
initial_estimation_checks(objective_function,xparam1,dataset_,M_,estim_params_,options_,bayestopt_,oo_);

Error in dynare_estimation (line 70)
dynare_estimation_1(var_list,dname);

Error in model (line 361)
dynare_estimation(var_list_);

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


BUT, when I look into the residuals of the static equations: no equation has the abnormal NAN or INF! Then how to find the crazy steady state problem in this model?

[jpfeifer]

Your model is fully nonlinear, but you don't provide initial values. Thus Dynare initalizes them with 0. But consumption cannot be 0. If you want estimation tow work, add an initval or even better an steady_state_model-block