Hi everyone,

I’m writing a code to simulate a deterministic model without shocks but It does not run properly and I think that the error is in the initial values, could someone help me out please ?

//Variables

var Y, C, K, L, A, N;

varexo psi;

//does not include exogenous term ed

parameters alpha, n, g, delta, beta, gamma, h;

alpha=0.3;

//ed=0.015138557;

n=0.026;

g=0.156;

delta=0.01;

beta=0.90;

gamma=0.5;

h=0.5;

model;

Y = A*(K^alpha)*((L*exp(psi))^(1-alpha));

C+K(+1)-(1-delta)*K=A*(K^alpha)*((L*exp(psi))^(1-alpha));

(C(+1)/C)=beta*((1-delta)+alpha*A(+1) K(+1)^(alpha-1)*N-L)=C*((1-gamma)/gamma);

(L(+1)exp(psi))^(1-alpha));

(1-alpha)A(K^alpha)((Lexp(psi))^(-alpha))(h

N(+1)=(1+n)*N;

A(+1)=(1+g)*A;

end;

initval;

Y = 1.08068253095672;

C = 0.80359242014163;

L = 0.5;

K = 5;

N = 2;

A = 2;

psi=0.1;

end;

stoch_simul(periods=2100);

Error messages obtained:

Error using svd

Input to SVD must not contain NaN or Inf.

Error in cond (line 39)

s = svd(A);

Error in solve1 (line 118)

elseif bad_cond_flag && cond(fjac) > 1/sqrt(eps)

Error in dynare_solve (line 126)

[x,info]=solve1(func,x,j1(r(i):r(i+1)-1),j2(r(i):r(i+1)-1),jacobian_flag,

bad_cond_flag, varargin{:});

Error in resol (line 102)

[steady_state,check1] =

dynare_solve(fh,steady_state,options_.jacobian_flag,…

Error in stoch_simul (line 66)

[oo_.dr, info] = resol(oo_.steady_state,0);

Error in Macro_adv (line 120)

info = stoch_simul(var_list_);

Error in dynare (line 120)

evalin(‘base’,fname) ;