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)