RBC and news

[AS90]

This code accounts for an extended RBC model featuring heterodox news shocks. When running the code the following alert appears:

Code: Select all

Residuals of the static equations:

Equation number 1 : NaN
Equation number 2 : NaN
Equation number 3 : NaN
Equation number 4 : NaN
Equation number 5 : NaN
Equation number 6 : NaN
Equation number 7 : NaN
Equation number 8 : NaN
Equation number 9 : 0
Equation number 10 : 0


Error using print_info (line 80)
The steady state contains NaN or Inf

Error in steady (line 92)
    print_info(info,options_.noprint, options_);

Error in RBCVN (line 204)
steady;

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


.

Any elucidation thereat (as to the issue's genesis) would be appreciated. Thanks.

[jpfeifer]

In your first equation, the part

Code: Select all

-alpha*gamma

is not linear. I guess there is a mistake in the linearization.