Dear all
I just started learning dynare and i copied the example mod file in dynare user guide :
var y, c, k, a, h, b;
varexo e, u;
parameters beta, rho, alpha, delta, theta, psi, tau;
alpha = 0.36;
rho = 0.95;
tau = 0.025;
beta = 0.99;
delta = 0.025;
psi = 0;
theta = 2.95;
phi = 0.1;
model;
cthetah^(1+psi)=(1-alpha)y;
k = beta(((exp(b)c)/(exp(b(+1))c(+1)))
(exp(b(+1))alphay(+1)+(1-delta)k));
y = exp(a)(k(-1)^alpha)(h^(1-alpha));
k = exp(b)(y-c)+(1-delta)k(-1);
a = rhoa(-1)+taub(-1) + e;
b = taua(-1)+rhob(-1) + u;
end;
initval;
y = 1.08068253095672;
c = 0.80359242014163;
h = 0.29175631001732;
k = 5;
a = 0;
b = 0;
e = 0;
u = 0;
end;
shocks;
var e; stderr 0.009;
var u; stderr 0.009;
var e, u = phi0.0090.009;
end;
stoch simul(periods=2100);
I got this error message:
Undefined function ‘varexo’ for input arguments of type ‘char’.
I will be really appreciate your help.
Regards
niloofar