Hello every one,

I am new in dynare. I am reviewing the model of Gertler,Kiyotaki 2012 “Financial crises,bank risk exposure and government financial policy”. Based on other example in the forum, I wrote the simplified model without government and normalized labor=1 in dynare with all details(attache file). But unfortunately for all equations I have and error : Equation number : NaN. what is the problem? Should I linearize model? regarding Dynare is professional in linearizing, I think the problem couldn’t be form the unlinearized model side!

Also I have a questions:

- for Y (output) there is two equations that one of them is market clearing. but Dyanre says there are 30 variables and 31 equations. what I should do in this situation( I just ignore one equation that I know it could not be right! ).

Merci de m’avoir aidé .

GK1.mod (1.48 KB)