Dynare forums

hello,
I am trying to replicate the results of Heutel (2012), "How should environmental policy respond to business cycles?". The author had listed all F.O.C in his paper and appendix, including matlab code. I am trying to transform the procedure to dynare code with the attached parameters. I substituted the initval block with the value of teady state getting from author's results. However, I always get the same result and error:

"error using print_info (line 74)
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 steady (line 92)
print_info(info,options_.noprint, options_);

error in dynare_solvesystem_tax2 (line 247)
steady;

error in dynare (line 185)
evalin('base',fname) ; "

I would be extremely thankful if someone could help me? I have attached all files for your reference.

As always, check your equations for correctness and try to improve your initial values. In particular, if you try to guess, keep economic relations like

Code: Select all

i=delta*k


in mind.