I have a problem with my code. I’m coding now A New Keynesian Model with Price Stickiness from Eric Sims classes. But I have the following Error:
Using 64-bit preprocessor
Starting Dynare (version 4.5.7).
Starting preprocessing of the model file …
ERROR: There are 14 equations but 12 endogenous variables!
How I can throw some equations or add any variables?
Attached a code in mod file.
NKM_draft_stoch.mod (1.2 KB)