Dear masters of Dynare,
I am currently estimating small RBC model. I have log-linearized the model equations. Due to the structure of the model the steady-state values of endogenous variables (especially the employment rate) cannot be analytically solved for. Since these steady-state values show up in the log-linear equation this is a problem. I tried to solve this problem by using external function that solves for steady state value of employment using fsolve inside the model section. This way the steady-state values should be in accordance with current values of structural parameters. Unfortunately I am getting following error:
Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.
Starting Dynare (version 4.2.0).
Starting preprocessing of the model file …
Found 14 equation(s).
Evaluating expressions…done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives: - order 1
This application has requested the Runtime to terminate it in an unusual way.
Please contact the application’s support team for more information.
??? Error using ==> dynare at 126
DYNARE: preprocessing failed
Windows XP, Matlab R2010a, Dynare 4.2.0
labour_friction.mod (5.43 KB)
solve_n_ss.m (258 Bytes)
employ.m (2.26 KB)