Problem using steady state helper

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Problem using steady state helper

Postby macroeconomist » Thu May 12, 2016 11:10 am

Hi,

I would really appreciate any help or indication of what I am doing wrong here greatly!

I have followed all the suggestions provided in earlier discussions on the use of the steady state helper files for the use of fsolve or fzero to solve an equation non-liner in a particular variable. I have used the NK_baseline.mod examples to construct my .mod and helper files. However, I get the following error when I run the mod file:

Equation solved at initial point.

fsolve completed because the vector of function values at the initial point
is near zero as measured by the selected value of the function tolerance, and
the problem appears regular as measured by the gradient.

<stopping criteria details>

Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0.00085961
Equation number 7 : 0
Equation number 8 : -0.0003351
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : -0.29867
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : 0
Equation number 16 : 0
Equation number 17 : -0.035441
Equation number 18 : -0.071779
Equation number 19 : 0
Equation number 20 : 0
Equation number 21 : 0
Equation number 22 : 0
Equation number 23 : 0
Equation number 24 : -0.0031368
Equation number 25 : 0
Equation number 26 : 0

Error using print_info (line 72)
The steadystate file did not compute the steady state

Error in resid (line 112)
print_info(info,options_.noprint, options_)

Error in firm_vol2_2 (line 276)
resid(1);

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

Despite spending hours and days pouring over it I cannot understand what exactly is wrong. This is the first time I am using the helper function so any help will be greatly appreciated. I attach the mod and helper files. Thanks a lot!!
Attachments
firm_vol2_2_steady_state_helper.m
(728 Bytes) Downloaded 176 times
firm_vol2_2.mod
(3.96 KiB) Downloaded 152 times
macroeconomist
 
Posts: 10
Joined: Mon Aug 31, 2009 10:27 pm

Re: Problem using steady state helper

Postby jpfeifer » Fri May 20, 2016 12:26 pm

This means your steady state file is wrong. The problem seems not to be the helper function itself as it solve the equation you provided. But the computed analytical steady state is wrong. Try starting from a simplified version of the model for better debugging.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
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Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany


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