Extending a paper

Stochastic simulations
1

I’m trying to modify the model by Abadi et al. (2023).

My idea is to remove the different firms and introduce to different banks.

The mod file “OneFirm” works nicely. The mod file “TwoBanksModel” breaks down saying

"Error using print_info (line 33)
The steadystate file did not compute the steady state

Error in stoch_simul (line 119)
print_info(info, options_.noprint, options_);
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Error in TwoBanksModel.driver (line 1552)
[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_);
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Error in dynare (line 306)
evalin(‘base’,[fname ‘.driver’]);
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^”

TwoBanksModel.mod (9.0 KB)

OneFirm.mod (11.0 KB)

2

Use

resid(non_zero);

to see

Residuals of the static equations:
Equation number 29: Eq_B_1 : 0.009844
Equation number 44: Eq_B_2 : -0.009844

That must be the mistake.