Hi.
I’m currently a postgraduate student who has just begun to use dynare.
Currently, I’m trying to simulate a very simplified version of the Iaciovello 2005 housing model with collateral constraints.
So far, dynare has been able to calculate my steady state values but following that, I get an error message about ‘indeterminacy’.
I was just wondering if anyone could explain how I could resolve this issue as I have been trying for 3 weeks now to no avail.
new.mod (1.02 KB)