Bond market in NK_DSGE and Steady State

[Muhammad Ali Nasir]

Hello

I am trying to run this model but it is giving error, problem with Steady State, the data set of bond yield (B) is attached.

Regards

Ali

[jpfeifer]

Put

Code: Select all

resid(1);
steady;

before estimated_params. You will see that your starting values for computing the steady state for some variables are wrong/too far away.

[Muhammad Ali Nasir]

Thank you very much indeed for reply, you are right this is the message it is giving, could you please advise me which values I should assign.

Regards and best wishes

Ali

[Muhammad Ali Nasir]

jpfeifer could you please help me as well.

[jpfeifer]

As always in those cases, either try finding the steady state with pen and paper and provide exact starting values, or use a trial and error approach to minimize residuals.