The steadystate file did not compute the steady state

[Cfarias]

Hi,

I've read other topics about this subject and i didn't find a solution to my problem. So, when i try to compute the model i'm working on i get the following message from dynare:

warning: delete: no such file: master_static.mex
warning: called from
delete at line 47 column 9
erase_compiled_function at line 23 column 5
master at line 224 column 1
dynare at line 188 column 1
warning: delete: no such file: master_dynamic.mex
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero
warning: division by zero




Residuals of the static equations:

Equation number 1 : NaN
Equation number 2 : NaN
Equation number 3 : NaN
Equation number 4 : NaN
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : NaN
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : NaN
Equation number 16 : NaN
Equation number 17 : NaN
Equation number 18 : 0
Equation number 19 : NaN
Equation number 20 : NaN
Equation number 21 : 0
Equation number 22 : NaN
Equation number 23 : NaN
Equation number 24 : 0
Equation number 25 : 0
Equation number 26 : 0
Equation number 27 : 0
Equation number 28 : 0
Equation number 29 : 0
Equation number 30 : 0
Equation number 31 : NaN
Equation number 32 : -1.0183
Equation number 33 : NaN
Equation number 34 : NaN
Equation number 35 : NaN


error: The steadystate file did not compute the steady state
error: called from
print_info at line 72 column 9
resid at line 112 column 5
steady at line 90 column 9
master at line 341 column 1
dynare at line 188 column 1

The steady state equations are correct because when i compute separately it appears no error.

[jpfeifer]

You need to be more careful. The last time I helped you write the steady state file, it was for a case where all variables are mean 0 and therefore the

Code: Select all

NumberOfEndogenousVariables = M_.orig_endo_nbr; %auxiliary variables are set automatically
for ii = 1:NumberOfEndogenousVariables
  varname = deblank(M_.endo_names(ii,:));
  eval(['ys(' int2str(ii) ') = ' varname ';']);
end


part of the steady_state-file was not needed. Now you have a case where some variables are set in the steady_state-file. In that case, you need to use the above block and assign values to all endogenous variables

[Cfarias]

I put this block in the steady state file and i still get the following errors:


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
Equation number 7 : -1.9129
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : -0.0436
Equation number 16 : 0
Equation number 17 : 0
Equation number 18 : 0
Equation number 19 : 0
Equation number 20 : 0
Equation number 21 : 0
Equation number 22 : 0
Equation number 23 : 0
Equation number 24 : 0
Equation number 25 : 0
Equation number 26 : 0
Equation number 27 : 0
Equation number 28 : 0
Equation number 29 : 0
Equation number 30 : 0
Equation number 31 : -0.018553
Equation number 32 : 0
Equation number 33 : 0
Equation number 34 : 0
Equation number 35 : 0


error: The steadystate file did not compute the steady state
error: called from
print_info at line 72 column 9
resid at line 112 column 5
steady at line 90 column 9
master at line 336 column 1
dynare at line 188 column 1

[jpfeifer]

That tells you that your steady state does not match the entered equations. In one of the two, there must still be a mistake. Focus on the equations with a residual.

[Cfarias]

Thank you very much professor. Now I did worked.

Just one more question (maybe a silly one). As i wrote my model in the original form (not log-linearized), may i write the exogenous process in the following way?

ln(P_C) = (1 - rho_C)*ln(Pss_C) + rho_C*ln(P_C(-1)) + eps_C

or do i have to write in this way: ln(P_C) = rho_C*ln(P_C(-1)) + eps_C ?

The reason for that question is when i use the latter exogenous process and calibrate P_C at the steady state a value different from one, i get the same error as before. For the others exogenous processes, that is A_T, A_N, A_C i get no error. However, when i use the former one, the problem is solved.

[jpfeifer]

The second one can only work if the steady state of P_C is 1. The other formulation is the actually correct one where the steady state of P_C is Pss_C

[eab]

Hi...
That is make sense if I find all the value of my steady state variables to be zero? And what will be the implication.

STEADY-STATE RESULTS:

c 0
c_o 0
c_u 0
P 0
P_u 0
P_o 0
R_o 0
R_u 0
pi_o 0
pi_u 0
m_F 0
v_F 0
U 0
g_F 0
f_F 0
l_o 0
y_o 0
A_o 0
k_o 0
P_w 0
q_o 0
mc_o 0

########################

[jpfeifer]

Your model is linearized and therefore must have steady state 0, because in steady state, the deviation from steady state must be 0

[eab]

Thank you very much Prof. Pfeifer for the clarification.

[eab]

If IRFs are not smooth is there any problem with it or with my model?

[jpfeifer]

What do you mean with

not smooth

?

[eab]

What i meant was: The various IRFs show a zig-zag trend. The trajectories are not smooth.

[jpfeifer]

If they oscillate this often indicates a timing error giving rise to a complex eigenvalue.