Hello All,

I am a beginner in Dynare. I would like to use Dynare for a basic optimisation problem in asset pricing with epstein zin preferences. I have referred to github.com/JohannesPfeifer/DSGE … 2.mod#L124 while building the codes (with some changes as I would like to get the stock return instead of return to capital). I have referred to Kung and Schmid (2015) for to build this basic model version.

I have not included the Euler equation as Kung and Schmid (2015) does not include the same in the equilibrium conditions. Do you think this is what is causing the problem?

When I run the file to solve the model, i get the following error message. Please could you help to see if there is something wrong in my code?

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Local state space iteration (second order).

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

[mex] Quasi Monte-Carlo sequence (Sobol).

[mex] Markov Switching SBVAR.

Starting Dynare (version 4.4.3).

Starting preprocessing of the model file …

Found 14 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1
- order 2

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

Residuals of the static equations:

Equation number 1 : 0

Equation number 2 : 0

Equation number 3 : 0

Equation number 4 : 0

Equation number 5 : 0

Equation number 6 : 1.0005

Equation number 7 : 0

Equation number 8 : 0

Equation number 9 : 0

Equation number 10 : 0

Equation number 11 : 0

Equation number 12 : 0

Equation number 13 : 0

Equation number 14 : 0

??? Error using ==> print_info at 72

The steadystate file did not compute the steady state

Error in ==> resid at 112

print_info(info,options_.noprint, options_)

Error in ==> steady at 90

resid;

Error in ==> epsteinzin at 158

steady;

Error in ==> dynare at 180

evalin(‘base’,fname) ;

Best,

Ammu