I am trying to introduce consumption and labor income taxes in the financial accelerator model from Bernanke, Gertler and Gilchrist.
But when I try to run my Dynare file, matlab breaks down and does not start computing.
I get the message:
Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.
Starting Dynare (version 4.1.0).
Starting preprocessing of the model file …
Found 19 equation(s).
Computing static model derivatives:
- order 1
Computing dynamic model derivatives:
- order 1
- order 2
Processing outputs …done
Starting MATLAB/Octave computing.
And after this nothing happens at all, I can’t work with Matlab anymore, and have to close matlab with the windows task manager. (Matlab runs well with other files - without distortionary taxes)
Does anybody have an explanation for this or any other helpful comment?
Thanks a lot in advance.
All the best
BGG_distortionary_tax.m (9.35 KB)