Hi everyone,
I am working on a code of my macro network model. I can find out the steady-state but the simulation does not work at all! I upload the code below and does anyone have an idea?
All the best,
Andre
Benchmark.mod (3.6 KB)
Hi everyone,
I am working on a code of my macro network model. I can find out the steady-state but the simulation does not work at all! I upload the code below and does anyone have an idea?
All the best,
Andre
Benchmark.mod (3.6 KB)
You did not provide the modelparm_37sec.mat to run the model.
Hi jpfeifer!
Thanks for replying and sorry for forgetting to upload the file. Here it is!
modelparm_37sec.mat (21.6 KB)
Thanks for any help!!
All the best,
Andre
It’s very hard to see what is going on in your model. Have you tried a simplified version with fewer states? I also fail to see the purpose of
exp(Kd_3)=exp(Ks_3(-1));
That seems like causing a timing error.
Thanks for the respondence! I have tried exp(Kd_3)=exp(Ks_3) and the results do not change. I might need to try it again with fewer states. Thanks again!
And the reason for this exp(Kd_3)=exp(Ks_3(-1)); is that Ks is determined in last period and Kd is determined in this period in the model.
That cannot be correct. exp(Kd_3)=exp(Ks_3(-1))
implies that Kd_3
is known one period in advance.
Thanks for reminding me of this! I revised my model and attached it below here:
Model (263.9 KB)
And this is the updated code:
Only_K.mod (3.4 KB)
modelparm_37sec.mat (21.6 KB)
Any idea? Thanks for any help!
All the best,
Andre
If you add check;
, you will see
There are 3 eigenvalue(s) larger than 1 in modulus
for 0 forward-looking variable(s)
This suggests a systematic timing error in one variable that affects all three sectors. Why is your capital FOC backward-looking and not forward-looking? For example
beta*(exp(mu)*(1-delta_3)+exp(lambda_3)*alpha_3*theta_3*exp(Y_3)*(1/exp(K_3(-1))))=exp(mu(-1));
I eventually figured it out! Thanks a lot for all the help! This forum is defintely 5 points out of 5!