Dear Professor Pfeifer,
Would it be possible to take a brief look at my dynare code?
I am a beginner in Dynare and a PhD student who is trying to replicate 2003 Smets and Wouters to learn more about the New Keynesian Model.
However, I can’t seem to figure out why I am getting an
ERROR: BK condition not satisfied indeterminacy due to rank failure.
I have a feeling the error might be due to misspecified predetermined_variables.
If you can spot an obvious mistake in my dynare code, that would really help me out…
Sincerely,
Eric
SW_replication.mod (5.1 KB)