Deterministic Shock Simulation

Dynare help (legacy posts)
1

I’ve a Model where the price of a energy have a Permanent Jump at time one.Dynare Always Can Find the Steady State but it has problem finding transition path when jump(variable Mult is how much the price jumps) is larger than 2.I’m wondering what can be the cause and solution? thanks in advance

2

As it says

Using

simul(periods=500,stack_solve_algo=0,maxit=100);

solved the issue.

3

Thanks alot.But Now for Mult=4(This is magnitude of energy price jump) Dynare Can’t Solve.It Gives Warning Of Matrix Singularity.

4

It seems there is a model endogenous restriction on what Mult can be. It seems that it cannot be larger than 2.

5

Again thanks very much for your kind help.Actually there is no endogenous restriction and there is steady state for any price jump. I think I must look better in my model and try to simplify it more.

any way thanks for your help