Dear Prof. Pfeifer,
I am interested in running my model for different values of a parameter ‘phiP’ (in the calibration.m file, line 43). For values of phiP between -5 and -15, I am getting the following error: ‘failed to solve perfect foresight model’. Can you please help me understand why I am getting this error and how to overcome this issue?
I have tried the other non-linear model solution methodologies that exist in Dynare (stack_solve_algo=0 to 8) that also work with the bytecode option but I haven’t been able to get it to solve the model.
In order to run the model, please do this from the run.m file. I have already set phiP to -5 in calibration so Dynare can generate the error message.
Many thanks in advance for your help.
model3012_forum.zip (601.3 KB)