Hi, I am running a DSGE model in Dynare. I have log-linearized the system around its steady state value. However, when running the code, it works only with a certain combination of parameters. Other than that, it returns an error of indeterminacy. Does anyone have a solution for this? Much appreciated.
test_2.mod (3.7 KB)
What you describe is not unusual. There are many threads about determinacy regions. You did not tell us which parameters cause the issues.