I am trying to run a model of small open economy with financial frictions.
Private budget constraint equation set:
The dynare 5.2 reports an erro:
MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.
I check the timing of variables and the equations, I think all things are right.
But if I change the
Private budget constraint equation,(swap the position of the variable
B_P_star, the model can run successfully:
But as we all konw, the budget constraint is wrong.
I would like to know, where is wrong with this model?