I am trying to solve a NK model with capital using Dynare. I am getting an error which is as follows;
ERROR: Bean_2004_AER.mod: line 18, cols 1-7: To use an external function (psi) within the model block, you must first declare it via the external_function() statement.
Can anyone please help me with this? I am attaching my .mod file here.
Bean_2004_AER.mod (3.36 KB)
You are using a variable named psi, but it is not declared as a variable in the var statement.
Thank you Prof. Pfeifer. I have fixed that like you said. I am now facing more of an economics issue. I have 13 equations but 14 endogenous variables, and I do not know which equation I am missing in the system. Is this something you could advise me about? It would be a great help. I am attaching the mod file, if you would be willing to take a look.
Bean_2004_AER.mod (3.35 KB)
Sorry, but I cannot replicate the paper for you. You have to find out yourself which elements of the paper need to go into the mod-file.
This is unrelated to problem above, however related to general use of external_function.
While using external_function I assume dynare numerically calculated first and second order derivatives. However, if I am using third order approximation, dynare doesn’t calculate third order derivatives and throws an error.
Is there a workaround/solution to this ?
I have a model with formal and informal sector. In this model, the shocks in formal sector are passed through informal sector. I defined the shock in equation 12 and 13 in mod file. I got this error in below:
To use an external function (eps_G) within the model block, you must first declare it via the external_function() statement.
I think I declared everything properly. I would greatly appreciate if you could give me some suggestions why I receive this error because I just could not figure out. *model3.mod (7.2 KB)
Dynare 4.5.1 says
ERROR: model7.mod: line 111, cols 36-44: Unknown symbol: eps_G
ERROR: model7.mod: line 160, cols 1-6: Unknown symbol: log_gv
log_gv was never defined and it should be