Dynare forums

The following message pops out when I run the model, does it mean the fourth equation in my model is wrong?

STEADY: numerical initial values incompatible with the following equations
4

What the message means is that when one is plugging the values declared in initval into equation (4), it results in an infinite number most likely because of a division by zero.
Remember also that if you forget to declare a variable in initval, it is initialized with a zero value.

Best

Michel