I am trying to simulate a standard new Keynesian model. The model is from Eggertsson 2006 The mistake of 1937: A General Equilibrium Analysis. I changed the pricing setting a little bit because I don’t really know how to write the code for the setting in his paper. I got the following error message
STEADY: numerical initial values incompatible with the following equations
1 2 3 5
Please check for example
i) if all parameters occurring in these equations are defined
ii) that no division by an endogenous variable initialized to 0 occurs
I think I’ve defined all the parameters.
Another question is, is it ok just to put “check” instead of entering all the initial values? I am not sure if I could find all the steady state values by hand.
Could someone help me? Thanks!
Eggertsson 2006.mod (2.32 KB)