Hi,
Thanks for your suggestion. Yes, I knew its mostly the timing issue. But I was wondering where. Changing the timing of exogenous processes did not help.
The following mod file could run.
model.mod (4.9 KB)
Great, many thanks!
Hi,
I have extended the model with a fiscal rule. Sadly, steady state could not be computed. Any guide would be of great help.
model_fiscal.mod (5.7 KB)
The gbar in your steady_state_model-block evaluates to 0, which is infeasible given the log specification.
Thank you, Professor. Wondering whether writing separate equations for household (eq 18) and government budget constraint (eq 22) make sense?
Yes, generally that is what is required.