Dear all,

my mod file failed with the error:the steady state contains NaN or Inf.

I checked for lots of times, but I don’ know why.

The mod file is attached below.

Thank you very much.

Christinefiscal.mod (367 Bytes)

You did not provide an initval for `c`

, so 0 is taken, which is infeasible. You also did not set/define `tau_c`

and `tau_k`

.

thank you very much! It worked. But I got the another error: Blanchard Kahn conditions are not satisfied: indeterminacy. I’m not sure if it is related to the time. And, how can I simulate the model for 100 periods and plot the results.

Thank you very much!

The Blanchard-Kahn condition is not satisfied because you use the wrong timing convention for the capital stock. Since the capital stock used to produce today is actually decided yesterday, `k(-1)`

should enter the production function. You should similarly adapt the other side of the resource constraint, by shifting time indices.

Alternatively, you can keep your existing timing convention, but add `predetermined_variables k;`

at the beginning of your mod-file.

For the simulation, if you want the IRFs corresponding to the different shocks, you must declare their variance/standard deviation (using the `shocks`

block), and give the `irf=100`

option to `stoch_simul`

. If you want a more elaborate scenario, combining different shocks, you’ll have to use the `simult_`

function (search the forum).

thank you so much! it worked finally!! And how how can I define a time into my code like at t=0 and t=10? thank you again

I don’t understand your last question, please be more explicit about what you are trying to achieve.

I got a question that once-and-for-all increase in g at t=10 from 0.2 to 0.4. I don’t know if I should solve like to set a loop in my code.

This type of exercise cannot be satisfactorily performed using the so-called stochastic simulations. Those assume that you are solving the model in the vicinity of the (initial) steady state and that shocks are transitory. Moreover, in such a setup, Dynare assumes a steady state of zero for exogenous variables (so your `g=0.2`

is not actually honored).

If you are ready to abandon rational anticipations and to embrace perfect foresight, you can simulate a permanent shock using the `perfect_foresight_solver`

command of Dynare. See my slides on deterministic models for more details.

it worked again. The information is really useful. And I still want to know how can I plot the equilibrium path and the steady state into one graph.

Thank you very much.

You can either use the `rplot`

-command or use Matlab’s plotting tools to visualize the contents of `oo_.endo_simul`

.

thank you very much! And I also wrote anther one that does’t work well. It seems that there no steady state, I don’t know how to solve it . Thank you again.twocou.mod (914 Bytes)