Dynare forums

Hi,

I'm running a simple RBC model with steady state labor normalized to 1. The state state model command works fine when I run the model for stochastic simulation. However, when I run it for estimation, an error message says "the steady state cannot be found with the initial parameter values". How is this possible when the initial parameters and the model are the same? thanks in advance for any help
Lilia

Whenever I run your file, I get

Code: Select all

Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : -0.3644
Equation number 3 : 0.002054
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0


That is, your steady state file does not solve the model.