I am now trying to implement a stochastic implementation. I got the error “Error using print_info
Blanchard & Kahn conditions are not satisfied: indeterminacy.” Because a lot of these errors are because of timing, I already changed the capital timing. I don’t know what to do anymore.
My model has three sorts of agents: j=1,2 and 3 and two working periods and 1 retired period.
Model_UK.mod (9.5 KB)
An economic analysis of the existing taxation of Pensions (EET) versus an alternative regime (TEE).pdf (907.8 KB)
I have substantially simplified the model. Moreover I rewrote the consumption constraints. I still have the same error.
Simplified1.mod (4.6 KB)
Hopefully now it will be easier to understand.
Usually, it’s a timing issue. Did you have a look at other OLG model implementations that work?
Yes I did, I looked at a lot of other codes and people who struggle with the same error, but I did not figure it out.
@jpfeifer I think I have figured it out
I rearranged all equations, for example c(2), s.t. it starts at t=0. Because of the dynamics in the budget constraints this works for the OLG.