# Gertler and Karadi dynare simulation **URL:** \ **Category:** Stochastic simulations\ **Created:** [14 November 2018 11:06 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777 "2018-11-14T11:06:32Z")\ **Posts on this page:** 10\ **Page:** 1
**Author:** ![fabiolapedulla](https://forum.dynare.org/letter_avatar_proxy/v4/letter/f/53a042/32.png) [@fabiolapedulla](https://forum.dynare.org/u/fabiolapedulla)\ **Post date:** [14 November 2018 11:06 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/1 "2018-11-14T11:06:33Z")
Hey guys! I am writing a dynare code following Gertler and Karadi’s paper “A model of unconventional monetary policy”. I want to introduce a credit policy shock but the code cannot run! The problem is: "Error: File: GK\_creditpolicy2018.m Line: 416 Column: 18 Unexpected MATLAB expression. Error in dynare (line 223) evalin(‘base’,fname) ;" [GK\_creditpolicy2018.mod](https://forum.dynare.org/uploads/default/original/2X/1/1b8c2869c45fccdb0f47ca28c3a8a1721f74a20c.mod) (9.8 KB) I cannot find the errors! Would anyone help me? I post the code here… Thank you in advance! ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [14 November 2018 11:32 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/2 "2018-11-14T11:32:38Z")
```auto title('Household's consumption') ``` needs to be ```auto title('Household''s consumption') ``` to be recognized as a string in Matlab ---
**Author:** ![fabiolapedulla](https://forum.dynare.org/letter_avatar_proxy/v4/letter/f/53a042/32.png) [@fabiolapedulla](https://forum.dynare.org/u/fabiolapedulla)\ **Post date:** [14 November 2018 11:53 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/3 "2018-11-14T11:53:10Z")
Thank you professor! Now the error is: **"Error using print\_info (line 83)** **Impossible to find the steady state. Either the model doesn’t have a steady state, there are an infinity of** **steady states, or the guess values are too far from the solution** **Error in check (line 76)** \*\* print\_info(info, 0, options);\*\* **Error in GK\_creditpolicy2018 (line 386)** **oo\_.dr.eigval = check(M\_,options\_,oo\_);** **Error in dynare (line 223)** **evalin(‘base’,fname) ;"** What is wrong in your opinion? Thanks for the attention! ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [14 November 2018 13:48 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/4 "2018-11-14T13:48:59Z")
You need to find out why your changes imply that the steady state cannot be found. ---
**Author:** ![fabiolapedulla](https://forum.dynare.org/letter_avatar_proxy/v4/letter/f/53a042/32.png) [@fabiolapedulla](https://forum.dynare.org/u/fabiolapedulla)\ **Post date:** [19 November 2018 14:47 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/5 "2018-11-19T14:47:22Z")
Thank you professor! Now I changed some equations and I added the initval block! The error now is: "Error using print\_info (line 37) The generalized Schur (QZ) decomposition failed. For more information, see the documentation for Lapack function dgges: info=28, n=26. You can also run model\_diagnostics to get more information on what may cause this problem. Error in check (line 76) print\_info(info, 0, options); Error in PROVA (line 491) oo\_.dr.eigval = check(M\_,options\_,oo\_); Error in dynare (line 223) evalin(‘base’,fname) ; " What is wrong now? I post, as usually, the code…[PROVA.mod](https://forum.dynare.org/uploads/default/original/2X/d/d72b96dc207a0ab9e552e0e1c6b194dd58c2872c.mod) (10.7 KB) ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [19 November 2018 17:43 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/6 "2018-11-19T17:43:37Z")
`model_diagnostics` returns ```auto MODEL_DIAGNOSTICS: The Jacobian of the static model is singular MODEL_DIAGNOSTICS: there is 1 colinear relationships between the variables and the equations Colinear variables: psi Colinear equations 32 36 ``` The equation ```auto psi = psi+kap*(Rk(+1)-R-SPRSS)+shockpsi; ``` is strange, because it implies ```auto 0 = kap*(Rk(+1)-R-SPRSS)+shockpsi; ``` i.e. the `psi` drops out. ---
**Author:** ![fabiolapedulla](https://forum.dynare.org/letter_avatar_proxy/v4/letter/f/53a042/32.png) [@fabiolapedulla](https://forum.dynare.org/u/fabiolapedulla)\ **Post date:** [17 December 2018 13:22 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/7 "2018-12-17T13:22:09Z")
Hi everyone! I’m still working on Gertler and Karadi paper… Now I’m trying to study this model with EU calibration. Now I have a problem: the residual of equation 21 is not zero and I don’t understand why. I attach the code here…Could anyone help me? Thank you in advance[GK18EU.mod](https://forum.dynare.org/uploads/default/original/2X/e/e92d42fbfd1eee0952d1ace59b8e866ff7f9588f.mod) (10.2 KB) ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [18 December 2018 13:56 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/8 "2018-12-18T13:56:17Z")
```auto gov = 0.215; % government spending over GDP ``` seems to be inconsistent with ```auto GSS = 0.38; % ... government spending ``` ---
**Author:** ![Bandel](https://forum.dynare.org/letter_avatar_proxy/v4/letter/b/6de8d8/32.png) [@Bandel](https://forum.dynare.org/u/Bandel)\ **Post date:** [14 November 2024 14:09 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/9 "2024-11-14T14:09:42Z")
[modell1.mod](https://forum.dynare.org/uploads/short-url/7wVG58Nbb3cm7FRJPD3wnm6UMgj.mod) (7.6 KB) Dear Professor, I meet the same error, please help me check it. Thanks a lot. ---
**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\ **Post date:** [15 November 2024 10:15 UTC](https://forum.dynare.org/t/gertler-and-karadi-dynare-simulation/12777/10 "2024-11-15T10:15:32Z")
I can only give you the generic advice. Check your model setup and potentially work your way up from a simpler version that works.