Dear all,
I have written the codes, but dynare gives the following error.Could you help me how I should modify the model, or what should I do?I also attach the mod file.If you look, I would be grateful.
Thank you very much in advance,
Sincerely,
There are 5 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)
The rank conditions ISN’T verified!
??? Error using ==> print_info at 40
Blanchard Kahn conditions are not satisfied: no stable equilibrium
Error in ==> stoch_simul at 81
print_info(info, options_.noprint);
Error in ==> mn2 at 177
info = stoch_simul(var_list_);
Error in ==> dynare at 120
evalin(‘base’,fname) ;
mod file:
var c R p k y re L S I ez eg ;
varexo ug uz ;
parameters alpha beta sigma delta lambda rho_g rho_z tao_inf tao_y tao_L si ci sis tax sigma_ug sigma_uz ;
alpha=0.3;
beta=0.99;
delta=0.02;
lambda=0.3;
sigma=2;
rho_g =0.7;
rho_z =0.7;
tao_inf=1.5;
tao_y=0.25;
tao_L=2;
si=0.3;
ci=0.6;
sis=0.1;
tax=0.08;
sigma_ug=0.38;
sigma_uz=1;
model(linear);
c=(c(+1))-(1/(sigma))(R-(p(+1)));
R=(1-beta(1-delta))((sigma)(c(+1))+(1/1-alpha)(y(+1)-(k)+ p(+1)));
p=beta(p(+1))+lambda*((sigma)c-(alpha/1-alpha)(k(-1)-y))+ez;
k(-1)=siI(-1)+(1-delta)k(-2);
I(-1)=L;
y= cic+siI+taxsisS;
S=I/(1-tax);
R=re+tao_inf p+tao_yy+tao_L*(L(+1)-L);
re=R-p(+1);
ez=rho_zez(-1)+uz;
eg=rho_geg(-1)+ug;
END;
steady ;
check;
shocks;
var uz=(sigma_uz)^2;
end;
stoch_simul(order=1,irf=20);
mn2.mod (872 Bytes)