Dear community,
after having read all your posts regarding similar issues, I am reaching out to ask if you can help me spot my issue in my model.
I have 5 Eigenvalues larger than 1 in modulus for 4 forward-looking variables. I have checked that K and Omega are both pre-determined variables.
I would appreciate any suggestion/help.
Attached you find my mod file and the solver, as well as the model equations:
GE_Veld.mod (2.7 KB)
GE_SS.m (1018 Bytes)
Many thanks in advance!
Are you sure the timing of your FOCs is correct? I am attaching the FOCs with the timing used in Dynare, generated directly from the mod-file:
GE_Veld.mod (2.9 KB)
I find it a bit strange that the return to capital is fully predetermined.
Thanks for reviewing this. This is extremely helpful. I have revisited them, and I believe they are fine (as far as I can judge from translating/freestyling away from the original model, where they do not have dynamics). I still cannot find where the timing issue is.