I am trying to replicate Gertler, Sala, and Trigari 2008. When I run the code for the simulation I get:
“ERROR: my_GST.mod: line 252, cols 10-15: syntax error, unexpected NAME”
Lines 251 and 252 are:
variance Sigz_t = sigmaz^2;
Sigz_t has been declared as an exogenous variable at the start.
I don’t know why this problem is happening, any help would be very appreciated.
I have attached my .mod file.
my_GST.mod (6.8 KB)