Hi Guys,
Am new to dynare. I got the following error and spent hours trying to figure it out to no avail. Please help
ERROR: new.mod: line 20, cols 1-5: syntax error, unexpected NAME
Error using dynare (line 282)
Dynare: preprocessing failed
This is .mod
%DSGE Modeling my first programming model
%define endogenous variables
var y i k a c;
%define exogenous variables
varexo e;
%declare the parameters of the model
parameters alpha beta delta rho sigma sigmae;
%specify values of these parameters
alpha = 0.33;
beta = 0.99;
delta = 0.025;
rho = 0.95;
sigma = 2;
sigmae = 0.01;
%since we have named variables and specified parameter values, next stage is to declare the model
model;
exp(c)^(-sigma) = beta*(exp(c(+1))^(-sigma))*(alpha*exp(a(+1))*(exp(k))^(alpha-1) + (1-delta));
exp(y) = exp(a)*exp(k(-1))^(alpha);
exp(k) = exp(a)*exp(k(-1))^(alpha) - exp(c) + (1-delta)*exp(k(-1));
a = rho*(a(-1)) + e;
exp(i) = exp(y) - exp(c);
end;
%The next step is to specify initial values of the variables, given these initial values Dynare will numerically search for a steady state
initval;
k = log(29);
y = log(3);
a = 0;
c = log(2.5);
i = log(1.5);
end;
%The next step is to specify the variance of the shocks
shocks;
var e = sigmae^2;
end;
%next step we define the steady states
steady;
%The next command is the "stoch_simul" command which solves the model produces the policy functions and generates impulse responses functions and unconditional second moments
stoch_simul(hp_filter = 1600, order = 1, irf = 40);