Hi how to fix this error?

General DSGE Modeling Replication Attempts
1

Hi everybody i’m trying to replicate this paper “The Effects of Oil Price Shocks in a New-Keynesian Framework with Capital Accumulation”, by referring to the math appendix. Transcribing all the equations, however, I get this error: “Substitution of exo lags: added 4 auxiliary variables and equations. ERROR: There are 38 equations but 25 endogenous variables!”

Can anyone tell me how to fix it? Thank you!

pippo.mod (2.1 KB)
Appendix_Papier0.pdf (1.3 MB)

2

I already gave you the answer:

3

Now I made some changes and the error message is different indeed. What are the equations that I have not defined and that depend only on parameters? Thank you so much for your help and availability. :slight_smile:

4

The whole part

//Steady state rations
S=1;
Q=A*(E^alphae)*(L^alphal)*(K^alphak);
A=Q/((E^alphae)*(L^alphal)*(K^alphak));
//S*E=alphal*((eps-1)/eps)*Q; %superflua
E=alphae*((eps-1)/eps)*Q;
K=(Q-C-S*E-G)/(sig*S*k);
L=(((eps-1)*alphal/eps)*(Q/C))^1/(phi+1);
C=(1-omega-(alphae*(eps-1)/eps)*(1-sig*(alphak/alphae*r)))*Q;
r=1/beta-1+sig;
G=Q-S*E-sig*S*k-C;
//mc=F*Q((1-alpha)-1);

is usually just about the steady state and does not define the dynamic equations of the model.

5

I too had assumed that the error could be in this part of the code, but I reported the steady state as it is defined in the math appendix, how do I fix it? Thanks again :slight_smile:

6

Again, the steady state belong in a steady_state_model-block or should be a parameter definition via model-local variables, but not a separate equation.

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