I’m doing a discretionary policy for simple small open economy model by Galli and Monacelli (2005). As I do this policy I only let productivity shock to happen out of several other shocks.
But as I run the mod file, it shows this error.
Index exceeds matrix dimensions. Error in resid (line 101) if abs(z(i)) < options_.dynatol.f/100 Error in discretion (line 251) resid(1); Error in dynare (line 235) evalin('base',fname) ;
What can I do to erase it? And also can I let all the other shocks simultaneously to happen or not while doing discretion? Here is also the mod file.
Thank you so much.
discretion.mod (3.4 KB)