Help with trade model

Hi all,

I am trying to replicate Ghironi and Melitz 2005 paper International Trade and Macroeconomics Dynamics with Heterogeneous firms but I am facing a problem with dynare stating that there are 7 eigenvalues bigger than one for 6 forward looking variables. I have read the previous posts with similar problems but nothing works. I have attached my mod file so you can check it.

thank you very much for your help
ghironi.mod (1.86 KB)

Hi, Mark

Did you manage to solve your problem? If yes, I will really appreciate it, if you send your model to my email:, because I am also struggling with the same problem.


Hi everyone!
Have you found a solution to your problem? I am currently trying to program the paper of Melitz and Gheroni
Thanks in advance