Error: at least one equation must be declared

Stochastic simulations
1

We are simulating a simplified DSGE model with endogenous innovation.
And we are getting the error “at least one equation must be declared”. We tried to fix the issue, but couldn’t find a solution. You can find our code attached. Thanks in advance.
m1.mod (2.6 KB)

2

There is a problem with the encoding of the file. It contains things like
\fs20 \fs24 \

3

Thank you Mr Pfeifer,
we have solved this problem. However, we cannot find the steady state now.
Can you help us with this issue? That would be much appreciated.
new2.mod (1.1 KB)

4

You need to provide proper initial values in an initval-block as several variables cannot be 0 in steady state.

5

Hi! jpfeifer! I meet a similar problem.Could you help me with it.I put relevant information as follows:
ERROR: At least one model equation must be declared!
// claim the endogeneous variables
// ---------------------------------------
var c cstar n nstar y ystar w wstar q r rstar rk rkstar mc mcstar Kh Khstar Kf Kfstar Ih Ihstar If Ifstar a astar;

// ---------------------------------------
// claim the shocks variables
// ---------------------------------------
varexo etaa etaastar;

// ---------------------------------------
// ---- claim parameters ----
// ---------------------------------------
parameters beta betaa sigma varphi Omega epsilon alpha delta mu rhoa rhoastar sigmaa sigmaastar rss rkss rssstar rkssstar;

// ---------------------------------------
// calibration
// --------------------------------------

beta = 0.99;
betaa = 0.2;
sigma = 2.10;
varphi = 1.99;
Omega = 0.032;
epsilon = 4.61;
alpha = 0.2;
delta = 0.025;
mu = (epsilon-1)/epsilon;
rhoa = 0.50;
rhoastar = 0.50;
sigmaa = 0.01;
sigmaastar = 0.01;
rss = 1/beta;
rkss = rss+delta;
rssstar = 1/beta;
rkssstar = rssstar+delta;

// ------------------------------------------
// ---- set the model —
// --------------foreign country------------------------
exp(-sigma * cstar)/exp(-sigma * c) = exp(q);
exp(-sigma * cstar(+1))/exp(-sigma * c) = exp(- rstar);
exp(varphi * nstar + sigma * cstar) = exp(wstar);
exp(mcstar)=1;
exp(r)=exp(rstar)(exp(-q)Omega+(1-Omega))/(Omegaexp(-q(+1))+(1-Omega));
exp(nstar+wstar)=exp(mcstar+ystar);
exp(ystar)=exp(astar+alphaKfstar(-1)+betaaKf(-1)+(1-alpha-betaa)nstar);
exp(Kfstar(-1))(rkssstarexp(rkstar)-1)=(rkssstar-1)exp(mcstar + ystar);
exp(Kf(-1))(rkssstarexp(rkstar)-1)=(rkssstar-1)exp(mcstar + ystar);
exp(Kfstar)=(1-delta)exp(Kfstar(-1))+deltaexp(Ifstar);
exp(Kf)=(1-delta)exp(Kf(-1))+deltaexp(If);
exp(ystar)=(1-deltamu(alpha+betaa)/(rkssstar-1))exp(cstar)+deltamualpha/(rkssstar-1)exp(Ifstar)+deltamubetaa/(rkssstar-1)*exp(If);

// ---------------home------------------------
exp(-sigma * c(+1))/exp(-sigma * c) = exp(- r);
exp(varphi * n + sigma * c) = exp(w);
exp(mc)=1;
exp(rstar)=exp(r)(exp(q)(1-Omega)+Omega)/(exp(q(+1))(1-Omega)+Omega);
exp(n+w)=exp(mc+y);
exp(y)=exp(a+alphaKh(-1)+betaaKhstar(-1)+(1-alpha-betaa)n);
exp(Khstar(-1))(rkssexp(rk)-1)=(rkss-1)exp(mc + y);
exp(Kh(-1))(rkssexp(rk)-1)=(rkss-1)exp(mc + y);
exp(Kh)=(1-delta)exp(Kh(-1))+deltaexp(Ih);
exp(Khstar)=(1-delta)exp(Khstar(-1))+deltaexp(Ihstar);
exp(y)=(1-deltamu(alpha+betaa)/(rkss-1))exp(c)+deltamualpha/(rkss-1)exp(Ih)+deltamubetaa/(rkss-1)exp(Ihstar);
// ------------ Exogenous variables --------------
//a = rhoa * a(-1) + etaa;
//astar = rhoastar * astar(-1) + etaastar;
exp(a)=exp(a(-1))^rhoaexp( etaa);
exp(astar)=exp(astar(-1))^rhoastar*exp( etaastar);
end;

// ------------------------------------------
// ---- compute the initial values —
// ------------------------------------------

initval;
r = 0;
w = 0;
a = 0;
mc = 0;
y = 0;
c = 0;
n = 0;
Kh = 0;
Kf = 0;
Ih = 0;
If = 0;
rk = 0;
q = 0;
rstar = 0;
wstar = 0;
astar = 0;
mcstar = 0;
ystar = 0;
cstar = 0;
nstar = 0;
Khstar = 0;
Kfstar = 0;
Ihstar = 0;
Ifstar = 0;
rkstar = 0;
end;

steady;
check;

shocks;
var etaa = sigmaa^2;
var etaastar = sigmaastar^2;
end;

stoch_simul(irf = 100, order = 1, periods = 20000, drop = 400);

6

You are missing a model;- statement.

7

Thank you for your help! But I can not find out which “;” I am missing. Could you please point out it for me?
invest.mod (3.9 KB)
I will be extremely grateful.

8

Use invest.mod (3.9 KB).
Now

applies.

9

Thanks a lot!

10

Could you please help me with the problem?
ERROR: invest2.mod: line 60, cols 1-8: syntax error, unexpected NAME
invest2.mod (5.4 KB)

11

I think that a semicolon is missing on line 56.

Best,
Stéphane

13

You are right! Thank you!