numerous steady states?

[ahoruzhenko]

Good afternoon everyone,

I am currently writing a dynare code for a modified model of Aoki Benigno (2015). The problem consists in the following: my matlab file solves my system iteratively and the solution is sensitive to the change of initial values (a change in x0 leads to matlab printing out a different steady state), dynare continues to output

"Impossible to find the steady state. Either the model doesn't have a steady state, there are an infinity of steady states, or the guess values are too far from the solution".

So I guess that there infinitely many steady states. Is there a technique to handle this? Can linearizing with exp() help? Or maybe I should change options of steady command? Or the only solution is to change my model?

Thank you in advance for your precious help. Both codes attached.
Anna Khoruzhenko

[jpfeifer]

You have two variables

Code: Select all

s1 s2

that do not appear in the model.