Dynare modelcroissance_flo.mod////Blanchard Kahn conditions are not satisfied: indeterminacy

Stochastic simulations
1

please help me solve this problem

STEADY-STATE RESULTS:

yd 0
c 0
y 0
ci 0
cj 0
r 0
pi 0
y_impor 0
y_expor 0
yrm 0
pd 0
s 0
prm 0
w 0
z 0
h 0
k 0
i 0
k_g 0
mc 0
a 0
g_i 0
g_c 0
g_tr 0
pib 0

EIGENVALUES:
Modulus Real Imaginary

  2.948e-016      -2.948e-016                0
     0.09477          0.09477                0
      0.2548           0.2548                0
      0.6026           0.6026                0
      0.9122           0.9122                0
        0.95             0.95                0
        0.95             0.95                0
        0.95             0.95                0
        0.95             0.95                0
        0.95             0.95                0
        0.95             0.95                0
       0.975            0.975                0
      0.9951           0.9951                0
           1                1                0
        1.05             1.05                0
       4.266            4.048            1.347
       4.266            4.048           -1.347

There are 3 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)

The rank condition ISN’T verified!

error: Blanchard Kahn conditions are not satisfied: indeterminacy

2

excuse me
i attach my file. i use dynare 4.5.6
Thanks for any help!
modelcroissance_flo.mod (5.5 KB)

3

There may be a timing issue in your model or a problem with your parametrization. It seems you have a fiscal rule. In that case, you can try to experiment with the parameters to see whether that alters anything.

4

Thank you very much Professor for your intervention for my problem.
I ended up solving my problem by rewriting another code because I did not see where the problem was.
The new code works well and I make stochastic shocks but I would like to make a deterministic shock over several years (10 years) to determine a threshold level.
If I’m shocked, I do not see any graphics. Just a table and this message:

All endogenous are constant or non stationary, not displaying correlations and autocorrelation

Is there still an error in the code or I do not understand the result of the deterministic shock?

5

Hi,

I do not understand what you are trying to do here. If the variance of the innovations are zero, because you consider a deterministic version of your model, the second order moments are not defined and indeed there is nothing to display. What do you do exactly after the declaration of the model?

Best,
Stéphane.

6

Thank you Stephan for your intervention.
I did not specify zero variance. I gave a non-zero variance.
I would like to simulate a deterministic shock over several years (10 years) to determine an optimal level for the components of public spending.
But I do not understand the output I get. I would like to know if this is the end result or it is an error message.
I attach the file.
Thank you again for your interventions.
modelcroissance.mod (3.6 KB)

7

You are still trying to do stochastic simulation (stoch_simul), although you want to simulate under perfect foresight. You need to use
perfect_foresight_setup and perfect_foresight_solver. See the manual.

8

Thank you professor Johannes

9

I have another problem.
When I try to make a Bayesian estimate, dynare only displays the priori densities and the following message:
You did not declare endogenous variables after the estimation/calib_smoother command.
error: Some variables are missing (g_c)!

but it does not display the posteriori densities
i attach the data and the file
code_final.mod (6.0 KB)
donne_flo.m (339 Bytes)

10

The error message should be crystal enough… Variable g_c is missing in your database.

Best,
Stéphane.

11

Thank you Professor Stephan.
But in the database, I only have 3 variables dep, g_c and g_i that I have specified. I still do not understand the meaning of the error.

12

In your datafile, the script donne_flo, you only define dep, g_i and g_tr:

dep=data_flo(:,1);
g_i=data_flo(:,2);
g_tr=data_flo(:,3);

There is no variable g_c.

Best,
Stéphane.

13

Thank you professor Stephan for your reply.
I corrected the mistake and I think it’s okay.
But how can we correct this?:

error: ‘norminv’ undefined near line 66 column 16

It seems that there is a problem with this function and I do not know how to correct it. I use dynare 4.5.6 in octave 4.4.0

14

Hi, This function is shipped with Dynare in case you do not have it, the error suggest there is something wrong in your Octave path. Did you install the statistics toolbox from Octave Forge? The missing function is available in this package. To install it, open an Octave shell and do:

octave:1> pkg install -forge statistics

and load the package:

octave:2> pkg load statistics

Best,
Stéphane.

15

thank you professor Stephane

16

Hello!!
please can someone show me how to interpret a permanent shock?
That is, calculating the net effect of a shock over several periods.
Thank you

17

Hi, you need to elaborate on this. What is the problem you are facing?