Failed to solve perfect foresight model!

Perfect foresight simulations
1

Hello Dynare users,
I am trying to perform a perfect foresight exercise for the Tunisian economy based on the Trabandt and Uhlig (2015) model. Dynare solves the steady state perfectly, but for the perfect foresight dynamics, it declares “Failed to solve perfect foresight model” each time, even when I use perfect_foresight_solver(robust_lin_solve). Any advice would be greatly appreciated.

Thanks!
Laffer_transition1.mod (6.3 KB)

2

From what I can see, a major issue is that your terminal condition is not a steady state.