As part of broader project, I am trying to replicate Andolfatto (1996) (http://individual.utoronto.ca/zheli/D13.pdf), which is the basic RBC model with labor search embedded. I get the following error:
Preformatted textError using print_info (line 45) Blanchard Kahn conditions are not satisfied: indeterminacy
The mod file finds the steady state easily (thanks to the steady state values given in the paper), but something is wrong in the dynamics of the model. I would appreciate any insight to what is happening here!
Here is the mod file: andolfatto_v4.mod (2.8 KB)
I am seeking to replicate the decentralized economy. The equilibrium in this model is described in the end of Section I. The equations are listed in a pdf attached to a comment below.