Dynare forums

Hello guys, i have the following model:

Code: Select all

var i, w, c, h, y, k, d, n, inv;
varexo a q;

parameters theta, beta, eta, delta, alpha, gamma;

beta = 0.99;
theta = 0.5;
delta = 0.025;
alpha = 0.33;
gamma = 0.25;
eta = 0.4;

model;
1 = beta*c/c(+1)*(1+i);
w = ((1-theta)/theta)*(c/(1-h));
a*alpha*y/k = (delta+q*i)+(q-(q(+1)*(1-delta)/(1-eta)));
a*gamma*y/h = w;
q*k = d + n;
k(+1) = (1-delta)*k+inv;
d(+1) = d+q(+1)*inv-(1-eta)*(y-w*h-delta*k-i*d);
y = a*(k^alpha)*(h^gamma);
y = c+inv;
end;

initval;
i = 0.010101;
w = 1.329132;
c = 1.038302;
h = 0.218812;
y = 1.163320;
k = 5.000747;
d = 177.216415;
n = -202.238652;
inv = 0.125019;
a = 1;
q = 1;
end;
steady;

endval;
i = 0.010101;
w = 1.329132;
c = 1.038302;
h = 0.218812;
y = 1.163320;
k = 5.000747;
d = 177.216415;
n = -202.238652;
inv = 0.125019;
a = 1;
q = 0.5;
end;
steady;

simul (periods=1000);


I can find the Numbers of the new Steady State by hand, but when I run it in Dynare, the program states the following:

Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : -0.019201
Equation number 3 : 0.60879
Equation number 4 : -0.058768
Equation number 5 : 76.4801
Equation number 6 : -2.7448e-07
Equation number 7 : -1.8181
Equation number 8 : 0.19628
Equation number 9 : -8.4456e-07


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 Yin (line 152)
steady;
Error in dynare (line 180)
evalin('base',fname) ;

Do you know what might it be happening? Why can I find the SteadyState solution by hand but Dynare detects an error?

Exogenous variables in Dynare have always steady state 0. You need to put a in exp().