When running my model, I receive the following message " Error using ==> trustnlegn , Ojective funtion is returning undefined values at initial point. FSOLVE cannot continue."
I am a beginer so I need some advices to solve this problem.
tafnoinit.mod (4.63 KB)
When I run it in Dynare 4.3.2 it clearly shows the problem. You did not provide initial values. Hence, Dynare uses 0. But your first equation says for example
Hence, if C is initialized to 0, you start with an NaN.
That’s why Dynare says
[quote]Please check for example
i) if all parameters occurring in these equations are defined
ii) that no division by an endogenous variable initialized to 0 occurs[/quote]