Help with code

Dynare help (legacy posts)
1

Good Day,

Ive been working with this code, but I cannot find why is still sending me a syntaxis error!.. please your support thank you!..

/* Y shows output, c consumption, k capital, i investment, l is labor, h working hour, psi shows B/Z = 2,67/0,74 = 0,277 */

/* VARIABLES*/
var Y, L, C, I, W, K, ly, lh, lc, li, lw, lk z ;
varexo e;

parameters beta, fi, alpha, delta, psi, ze;

alpha = 0.36;
beta = 0.99;
delta = 0.024;
rho = 0.95;
sigma = 0.09;
psi = 0.277;
ze = 1;

/* Steady states*/

rr=1/beta-1;
zss = 1;
css=(1-alpha)(zss/psi)(alphazss/(rr+delta))^(alpha/(1-alpha));
kss=css/((rr+delta)/alpha-delta);
yss=ze(kss^(alpha))(L^(1-alpha));
iss=deltakss;

wss=(1-alpha)*yss/L;

/* MODEL*/

model;

(1/beta)C(+1)/C=alphaY(+1)/K+1-delta; /* Euler equation*/
psiC=(1-alpha)Y/L; /labor market eq./
Y = C + K - (1-delta)K(-1); /Resource constraint/
Y = exp(z)K(-1)^alphaL^(1-alpha); / production function/
I=Y-C;
W=(1-alpha)Y/L; / real wages/
z=fi*z(-1)+e; /theta-shock follows this process -law of motion/

/log transformations of end. variables/
ly=log(Y);
lh=log(L);
lc=log©;
li=log(I);
lw=log(W);
lk=log(K);
end;

/i found some initial values from other examples in dynare, but i am not sure if they fits on with theory or not/
initval;
Y = 1.08068253095672;
C = 0.80359242014163;
L = 0.29175631001732;
K = 11.08360443260358;
I = 1.2;
W = 2.07;
e = 0;
end;

shocks;
var e;
stderr 0.009;
end;

2

Hi,

I made some corrections but you still have some mistakes. Btw I don’t see why you try to get steady-state constants and then ask Dynare to calculate the steady-state for you.

Have a look at it. Hope it helps.

Kyriacos
something.mod (1.33 KB)

3

Hi!,

Thank you for the comment. Im still working with this code, Ill post you back when I have all, you are right about the steady-state. Thank you for your help :slight_smile:

Hugo

4

Hello!,

Im sorry… is me again… as you can see Im very new in using dynare and still having some problems with the code. Can you please help me?. Thank you

%/* Y shows output, c consumption, k capital, i investment, l is labor, h working hour, psi shows B/Z = 2,67/0,74 = 0,277 */

%/* VARIABLES*/
var Y L C I W K ly lh lc li lw lk z ;
varexo e;

parameters beta, fi, alpha, delta, psi, ze;

alpha = 0.36;
beta = 0.99;
delta = 0.024;
rho = 0.95;
sigma = 0.09;
psi = 0.277;
ze = 1;

/* Steady states*/

rr=1/beta-1;
zss = 1;
css=(1-alpha)(zss/psi)(alphazss/(rr+delta))^(alpha/(1-alpha));
kss=css/((rr+delta)/alpha-delta);
yss=ze(kss^(alpha))(L^(1-alpha));
iss=deltakss;
wss=(1-alpha)*yss/L;

/* MODEL*/

model;

(1/beta)C(+1)/C=alphaY(+1)/K+1-delta; /* Euler equation*/
psiC=(1-alpha)Y/L; /labor market eq./
Y = C + K - (1-delta)K(-1); /Resource constraint/
Y = exp(z)K(-1)^alphaL^(1-alpha); / production function/
I=Y-C;
W=(1-alpha)Y/L; / real wages/
z=fi*z(-1)+e; /theta-shock follows this process -law of motion/

/log transformations of end. variables/
ly=log(Y);
lh=log(L);
lc=log©;
li=log(I);
lw=log(W);
lk=log(K);
end;

shocks;
var e;
stderr 0.009;
end;

stoch_simul;

5

Sorry… I had many small errors… here is the correct code. Thanks for your support.

%/* Y shows output, c consumption, k capital, i investment, l is labor, h working hour, psi shows B/Z = 2,67/0,74 = 0,277 */

%/* VARIABLES*/
var ly, lh, lc, li, lw, lk, z;
varexo e;

parameters alpha, beta, fi, delta, psi;

alpha = 0.36;
beta = 0.99;
delta = 0.024;
fi = 0.95;
psi = 0.277;

/* Steady states*/
rr=1/beta-1;
zss = 1;
css=(1-alpha)(zss/psi)(alphazss/(rr+delta))^(alpha/(1-alpha));
kss=css/((rr+delta)/alpha-delta);
hss=(1/psi)(1-alpharr/(rr+(1-alpha)delta));
yss=zsskss^(alpha) * hss^(1-alpha);
iss=deltakss;
wss=(1-alpha)*yss/hss;

/* MODEL*/

model;

(1/beta)exp(lc(+1)-lc)=alphaexp(ly(+1)-lk)+1-delta; /* Euler equation*/
psiexp(lc)=(1-alpha)exp(ly-lh); /labor market eq./
exp(ly) = exp(lc) + exp(lk) - (1-delta)exp(lk(-1)); /Resource constraint/
exp(ly) = exp(z+alphalk(-1)+(1-alpha)lh); / production function/
exp(li)=exp(ly)-exp(lc);
exp(lw)=(1-alpha)exp(ly-lh); / real wages/
z=fi*z(-1)+e; /theta-shock follows this process -law of motion/
end;

/log transformations of end. variables/
initval;
ly=log(yss);
lh=log(hss);
lc=log(css);
li=log(iss);
lw=log(wss);
lk=log(kss);
z=zss;
end;

shocks;
var e;
stderr 0.009;
end;
steady;
stoch_simul(order=1,irf=100) ly lh lc li lk z;

stoch_simul;