Dear all,

## I would like to conduct a policy simulation under the assumption that the nominal interest rate stays at zero for some extended periods. For this exercise, I rely on the deterministic solver, simul. However, I obtain the following error messages:

## Error using horzcat

Dimensions of matrices being concatenated are not consistent.

Error in simul (line 58)

mess = 'SIMUL: error in model specification : variable ’

M_.endo_names(find(M_.lead_lag_incidence(M_.maximum_lag+1,:)==0),:)];

Error in basicmodel_kh4_debtrelief_ZLB (line 1039)

simul();

Error in dynare (line 180)

evalin(‘base’,fname) ;

Interestingly, if I use the stochastic solver, stoch_simul, I can solve the model and get dynamic responses to a shock considered.

It would be great if someone gives me an idear to overcome these error messages.

I attach the files regarding to my model.

Thank you in advance.

Jinhyuk

frac_default2.m (541 Bytes)

frac_default1.m (224 Bytes)

call_csolve4.m (333 Bytes)

call_csolve3.m (238 Bytes)

basicmodel_kh4_debtrelief_ZLB.mod (15.2 KB)