Dear all,

I am trying to replicate the dynare codes of https://economics.uwo.ca/newsletter/misc/2012/meeks_jun27.pdf for commercial bank and shadow bank sectors. Since I did not find the original codes, all the codes for these two sectors in the mod-file are written myself. I changed the model in household, firm and central banks.That is to say, the codes combine models from two different papers. After running the codes, I got the following information about the error:

Residuals of the static equations:

Equation number 1 : 0

Equation number 2 : 0

Equation number 3 : 0

Equation number 4 : 0

Equation number 5 : 0

Equation number 6 : 0

Equation number 7 : 0

Equation number 8 : 0

Equation number 9 : 0

Equation number 10 : 0

Equation number 11 : 0

Equation number 12 : 0

Equation number 13 : 0

Equation number 14 : 0

Equation number 15 : 0

Equation number 16 : 0

Equation number 17 : 0

Equation number 18 : 0

Equation number 19 : 0

Equation number 20 : 0

Equation number 21 : 0

Equation number 22 : 0

Equation number 23 : 0

Equation number 24 : 0

Equation number 25 : 0

Equation number 26 : 0

Equation number 27 : 0

Equation number 28 : 0

Equation number 29 : 0

Equation number 30 : 0

Equation number 31 : 0

Equation number 32 : 0

Equation number 33 : 0

Equation number 34 : 0

Equation number 35 : NaN

Equation number 36 : 0

Equation number 37 : 0

Equation number 38 : 0

Equation number 39 : 0

Equation number 40 : NaN

Equation number 41 : NaN

Equation number 42 : NaN

WARNING: Some of the parameters have no value (phi_r, phi_pi, phi_y, rho_c, rho_a, rho_r, rho_m) when using model_diagnostics. If these parameters are

not initialized in a steadystate file or a steady_state_model-block, Dynare may not be able to solve the model…

MODEL_DIAGNOSTICS: The steady state cannot be computed

You did not declare endogenous variables after the estimation/calib_smoother command.

Error in computing likelihood for initial parameter values

ERROR print_info (line 45)

Blanchard Kahn conditions are not satisfied: indeterminacy

ERROR print_info (line 45)

error([‘Blanchard Kahn conditions are not satisfied:’ …

ERROR initial_estimation_checks (line 175)

print_info(info, DynareOptions.noprint, DynareOptions)

ERROR dynare_estimation_1 (line 165)

oo_ = initial_estimation_checks(objective_function,xparam1,dataset_,dataset_info,M_,estim_params_,options_,bayestopt_,bounds,oo_);

ERROR dynare_estimation (line 105)

dynare_estimation_1(var_list,dname);

ERROR shadow_roland (line 492)

oo_recursive_=dynare_estimation(var_list_);

ERROR dynare (line 235)

evalin(‘base’,fname) ;

I’ve searched a lot in the Forumn about the reasons for these errors and timing convention may be the biggest problem in my model. Although I checked the timing convention many times, I still got the same error information above. Would you please check my codes and tell me what is the main problem and how to correct it ?

Thanks a lot!

PS: I am using Dynare 4.5.7.