Dynare failed to solve perfect foresight model

Perfect foresight simulations
#1

Dear Prof. Pfeifer,
I am trying to use dynare to solve a deterministic model. When the permanent shock is small, such as from 0.4 to 0.41 for a parameter, dynare can solve the model, but when the shock is larger, such as from 0.1 to 0.41, dynare failed to solve perfect foresight model. I‘ve tried stack_solve_algo from 1 to 7, but it failed. I really don’t know how to solve it .
(Attached is my code)
Thank you very much
solve_ss1.m (1.1 KB)
steady_state2.m (2.6 KB)
tran_path.mod (5.3 KB)

#2

Have you tried solving the model without the exp()-substitution? Sometimes this creates numerical instabilities.

#3

Thank you,Sir.
You are right. When I solve the model without the exp(), dynare can solve the model as taut goes from 0.1 to 0.41. But when I set initial value of taut as 0, it failed again.
Attached is my new code.
Thank you again.
solve_ss1.m (1.1 KB)
steady_state2.m (2.5 KB)
tran_path.mod (5.7 KB)

#4

calibration1 is missing.

#5

Sorry, Sir. You can delete “parameter = calibration1;” which seems doesn’t matter.

#6

I guess

still applies here

#7

Failed to solve perfect foresight model means simulated results are wrong? It looks ok to me though…just some small defects compared to the case when the error didn’t show up.

#8

Yes, it means results do not satisfy the pre-specified tolerance.

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