I am trying to replicate a model after running my model, I keep getting the following error message.
Error using print_info (line 45)
Blanchard Kahn conditions are not satisfied: indeterminacy
Error in stoch_simul (line 100)
print_info(info, options_.noprint, options_);
Error in test (line 212)
info = stoch_simul(var_list_);
Error in dynare (line 223)
I would appreciate your assistance as I am currently new to dynare.
I have attached the code.test.mod (1.2 KB)
Your timing for capital is still wrong in some equations.
I am having an issue with Blanchard Kahn Condition. There are three types of agent in my model with their own budget constraint. I have one aggregate resource constraint. Due to Walras law one of them is redundant. When, I simulate the model by removing household or bank budget constraint ,I get simulation results but they are not same. Ideally these results should be same. But when I remove aggregate resource constraint or Entrepreneur budget constraint, I get error related to Blanchard Kahn condition. I am not able to figure out why this happening. Any help would be appreciated. I have checked and the model written satisfies Walras law on paper. Paper_Estimate.mod (4.8 KB)
Your code returns an indeterminacy problem, not a singularity/collinearity issue. So Walras law is the reason, but rather a timing (or linearization) error somewhere. I would recommend working with a nonlinear model as it will be less error-prone.