# Problems using SolveDSGE.jl

**URL:** <https://discourse.julialang.org/t/problems-using-solvedsge-jl/75787>\
**Category:** Modelling & Simulations\
**Tags:** economics\
**Created:** [February 4, 2022, 11:07am UTC](https://discourse.julialang.org/t/problems-using-solvedsge-jl/75787 "2022-02-04T11:07:41Z")\
**Posts on this page:** 1\
**Page:** 1

<div class="post-metadata">

**Author:** ![rgouveiamendes](https://sea2.discourse-cdn.com/julialang/user_avatar/discourse.julialang.org/rgouveiamendes/32/218636_2.png) [@rgouveiamendes](https://discourse.julialang.org/u/rgouveiamendes)\
**Post date:** [February 4, 2022, 11:07am UTC](https://discourse.julialang.org/t/problems-using-solvedsge-jl/75787/1 "2022-02-04T11:07:41Z")

</div>

Hello everyone,

I am trying to estimate the following model with SolveDSGE:

```julia
states:
a, k
end

jumps:
c, muc, n
end

shocks:
ε
end

parameters:
α = 0.4
β = 0.99
δ = 0.1
γ = 0.1
ρ = 0.9
θ = 5.0
sd = 0.01
end

equations:
c^(-1) = β * muc(+1) * (α * a(+1) * k(+1)^(α - 1.0) * n(+1)^(1.0 - α) + 1.0 - δ)
n = (θ^(-1) * c^(-1) * (1.0 - α) * a * k^α)^(1.0 / (γ + α))
k(+1) = a * k^α * n^(1.0 - α) - c + (1.0 - δ) * k
log(a(+1)) = ρ * log(a) + ε * sd
muc = c^(-1)
end

```

I wish to use a projection method with Chebyshev polynomials. But unfortunately, I am not succeeding.  
The problems start already in computing the steady-state.  
Do you have any suggestions about the vector of initial conditions?  
I just tried the `[0, 0, 0, 0, 0]` but it does not work.  
By trial and error, I discovered that `[0.5, 1.5, 0.5, 1.5, 0.5]` works, but this is not a very clever approach…  
Anyway, I computed the grid with:

```julia
P = ChebyshevSchemeStoch(ss,chebyshev_nodes,[21,21],9,4,[26.0 26.0; 0.1 0.1],tol,tol,maxiters)

```

But the model is not solvable, giving a `DomainError with -0.7941962588004425`.  
Does anyone know what am I doing wrong?

Thank you!