Hello everybody,

I changed the working capital model in McCandless (2008) in order that default in loans may occur.

I’m having some trouble with some nominal variables, as follows:

risky_loan_1_7.mod (1.9 KB)

THEORETICAL MOMENTS

VARIABLE MEAN STD. DEV. VARIANCE

y 0.0000 0.0197 0.0004

c 0.0000 0.0214 0.0005

inv 0.0000 0.0491 0.0024

l 0.0000 0.0123 0.0002

w 0.0000 0.0213 0.0005

r 0.0000 0.0138 0.0002

k 0.0000 0.0222 0.0005

p NaN NaN NaN

rn 0.0000 0.0023 0.0000

rf 0.0000 0.0101 0.0001

m NaN NaN NaN

n NaN NaN NaN

z 0.0000 0.0074 0.0001

g 0.0000 0.0023 0.0000

eta 0.0000 0.0100 0.0001

Thank you so much

Alves