I have made an OLG model with family altruism which is bequest motives.
My aim is to study how the real interest rate ® varies with demographic changes (n).
Therefore I have put n into endogenous variable and gave shocks.
However, Dynare says that:
errors print_info (line 32)
Blanchard & Kahn conditions are not satisfied: indeterminacy.
error: stoch_simul (line 103)
print_info(info, options_.noprint, options_);
error: olg.driver (line 183)
[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_,
error: dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;
I verified the equations but unfortunately I couldn’t find the errors.
Regarding this error, could someone tell me what the problem is and how to solve them ?
Here I have attached the recap of my model and dynare .mod file.