initval block

[eta]

Hi, the usual problem with initial values:

STEADY: Derivative of Equation 13 with respect to Variable r (initial value of r: NaN)
STEADY: Derivative of Equation 3 with respect to Variable c (initial value of c: 0)
STEADY: Derivative of Equation 5 with respect to Variable w (initial value of w: 0)
STEADY: Derivative of Equation 13 with respect to Variable w (initial value of w: 0)
STEADY: Derivative of Equation 6 with respect to Variable y (initial value of y: 0)

I provided all the above initial values, so I don't know what is wrong.

[jpfeifer]

In the initval block you use capital to define r, but capital is only set later. This makes r to be NaN as indicated in the error message.

[eta]

I've changed the order but now the usual tedious problem of steady state occurs. I've tried to compute the steady states in a separate .m file but this is the new problem

Warning: Trust-region-dogleg algorithm of
FSOLVE cannot handle non-square systems;
using Levenberg-Marquardt algorithm instead.
> In fsolve at 309
In numerical at 2

Is the unstable version of any help ? I would like to include the numerical values in the initival block. Thanks

[jpfeifer]

With the unstable version and increasing maxit, I was able to find a steady state. But at this steady state singularity ensued. Either there is still an issue with your model or Dynare converged to a second steady state and you need to provide values closer to the actual steady state you are interested in.

[eta]

How does the unstable version work ? Do I have to type

Code: Select all

addpath c:\dynare\2014-12-18\matlab

or what else ? I'm trying to replicate what you did, in order to check whether I can solve the problem with steady state of another file. Thanks.

[jpfeifer]

Exactly. You treat it like Dynare 4.4.3 and add the matlab subfolder to your path. After that, it should work.

[eta]

Unfortunately, I cannot find the steady state you mention. I have tried the unstable version 2014-12-18 and increased maxit to 400. How did you find it ?

[jpfeifer]

I used

Code: Select all

steady(maxit=1000);

and got

STEADY-STATE RESULTS:

q -1.00045
mc 1
r 0.0438603
c 0.00103286
k 1.21526e+13
x 1.67277e+12
h 6.46841e+11
pi 0
w 2.62252
R 0.00300903
r_e 0.00300903
y 2.09096e+12
gdp 2.09096e+12
gdp_hat 0
kappa 0
g 4.18192e+11
c_dev 0
w_dev 0
y_dev 0
h_dev 0
gdp_dev 0
pi_perc 0
R_perc 1.20905