Error in Solving TDCE with uncertainty

Steady state
1

Hi Professor,

I am writing a paper which involves the tax distorted competitive equilibrium with two stochastic elements (government spending and tech growth) and have hit a snag.

I receive this error (see below) and I’m not sure how to proceed.
Any help would be greatly appreciated.

Thanks
David
final.mod (5.5 KB)

dynare final.mod
Using 64-bit preprocessor
Starting Dynare (version 4.6.4).
Calling Dynare with arguments: none
Starting preprocessing of the model file …
ERROR: final.mod: line 48, cols 67-74: Symbol bb cannot take arguments.

Error using dynare (line 282)
Dynare: preprocessing failed

2

In line 48, there is a multiplication missing in bb(1-tk)

3

Great! Thank you.