Fiscal Stimulus Replication

final.mod (3.1 KB)
Good Morning everyone,

I am new to Matlab and I was attempting to run this code. However, I keep encountering errors such as
ERROR: final.mod: line 48, cols 1-3: syntax error, unexpected NAME. I do not know how to resolve them.

Please could you assist me?

There is a semicolon missing after
delta_g = 0.02

Good morning Prof,

I have an issue with the shocks i am trying to include in my model. The moment I run the model, I am getting the following error
ERROR: If the model is declared linear the second derivatives must be equal to zero.
The following equations had non-zero second derivatives:
* Eq # 13
* Eq # 14
* Eq # 15
* Eq # 16
* Eq # 17

And I do not know how to change the shock functions to ensure I do not get this error anymore.

Please helpfinal.mod (3.5 KB)

ln(xi_b) = rho_b*ln(xi_b(-1))+ sigma_b;
uses the logarithm and makes the equation nonlinear.

Thank you so much. That helped so much