Error in replicating temperature volatility risk

when replicating “temperature volatility risk”, I get the following error: Caught Dynare exception: dynare3.cpp:172: Could not obtain convergence in non-linear solver. Could you help me? (I run it through dynare++).

Temp.mod (5.2 KB)

xt= rhox+xt(-1)+taut*et+tauz*ez;

looks like a unit root with drift so that no steady state will exist.

I correct the equation and using dynare it works. When using dynare++ this is not the case. I do not understand why.

Please provide the updated version.

prova.mod (5.0 KB)

  1. Why do you want to use Dynare++ in the first place?
  2. What is the error message in Dynare++? The mod-file you posted uses Dynare syntax.

It gives me “Caught Dynare exception: dynare3.cpp:172: Could not obtain convergence in non-linear solver”. This is the mod file to be used in dynare++
new.mod (5.0 KB)

I can run new1.mod (5.0 KB) in Dynare++ 4.6.4 without any error message. Or are you invoking particular command line options.

I am trying to generate simulated moments. new1ss.mod (5.0 KB)
new1ss.mat (19.0 KB)
new1.mod (5.0 KB)
Also by changing the initial values with the steady state found by dynare steady option, nothing change. The file .mat gives me the following error:
Caught Dynare exception: dynare3.cc:178: Could not obtain convergence in non-linear solver
Done
Elapsed time is 606.577343 seconds.
1

Unrecognized function or variable ‘dyn_ss’.

The mat file contains data, not executable code.

Sorry for the inconvenience. Here it is the correct file.new1.m (658 Bytes)

The problem is

--ss-tol 1e-40

You are asking to solve an equation way beyond machine epsilon (maximum feasible precision)