Steady State problem in non linear model
Posted: Sat Mar 22, 2014 4:51 am
dsge_risks.mod- Dynare File
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Hi guys, I am trying to replicate the paper "Risk Matters: The Real Effects of Volatility Shocks" by Fernandez-Villaverde et al. but I am having problems calculation the steady state. I get following message: Error using
Starting Dynare (version 4.4.2).
Starting preprocessing of the model file ...
Found 14 equation(s).
Evaluating expressions...done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives:
- order 1
- order 2
- order 3
Processing outputs ...done
Preprocessing completed.
Starting MATLAB/Octave computing.
print_info (line 72)
The steadystate file did not compute the steady state
Error in stoch_simul (line 98)
print_info(info, options_.noprint, options_);
Error in dsge_risks (line 267)
info = stoch_simul(var_list_);
Error in dynare (line 180)
evalin('base',fname) ;
I am using the steady state model block, but it's not working.
The original paper can be found here
http://economics.sas.upenn.edu/~jesusfv/risk.pdf
the model is in page 21
thanks everyone