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.