Hi,

I am dynare new user.

I try to run this model on .mod file :

var y c k i l r w a lamda;

varexo e;

parameters beta delta gamma alpha sigmae rho_a;

alpha = 0.33;

beta = 0.99;

delta = 0.023;

gamma = 0.3;

rho_a = 0.95;

sigmae = 0.01;

model;

gamma/c = lamda;

((1-gamma)/gamma)*(c/(1-l))=w;
lamda=beta*lamda(+1)

*(1-delta+r(+1));*

k=(1-delta)l^(1-alpha);

k=(1-delta)

*k(-1)+ i;*

y=exp(a)(k(-1))^alphay=exp(a)

w=(1-alpha)

*(y/l);*

r=alpha(y/k(-1));

r=alpha

y=c+i;

a=rho_a*a(-1)+e;

initval;

k= log(29);

y= log(3);

a=0;

c=log(2.5);

i=log(1.5);

l = 0.34;

w = 3.23;

lamda = 0.32;

r = 0.033;

end;

shocks;

var e = sigmae^2;

end;

steady;

stoch_simul(hp_filter=6.25,order = 1, irf=20);

- And I have these error returns :

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Local state space iteration (second order).

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

[mex] Quasi Monte-Carlo sequence (Sobol).

[mex] Markov Switching SBVAR.

Starting Dynare (version 4.3.3).

Starting preprocessing of the model file …

ERROR: test.mod:31.1-7: Unknown symbol: initval

??? Error using ==> dynare at 114

DYNARE: preprocessing failed

- Please, tell me where I am wrong
- Is it advised to put the langrangian multiplier in the model like variable? If yes, what type of variable?

I am working on dynare 4.3.3 and MATLAB 7.9.0(R2009b). Thank you!