Dynare for a Model with Indeteminacy?

Dynare help (legacy posts)
1

Hello.

I’m wondering if we can use the dynare program to solve a model with indeterminacy such as Farmer Guo(1994).

Do we have to change some codes in Dynare?

Thank you.

2

I don’t have Farmer Guo (1994) at hand can you send it to me so I can answer?

Best

Michel

3

Here are two original papers on the model with indeterminacy.

  1. Farmer and Guo(1994 JET)
  2. Yi WEN (1998, JET)

In this model, two eigen values are less than one, so they have dynamics of ‘SINK’ rather than ‘Saddle Path’.

Thank you.
Yiwen1998JET.pdf (476 KB)
FarmerGuo1994JET.pdf (1.09 MB)

4

Thanks, I will look at it and get back to you

Best

Michel