Initial value problem

Dear all,

Hello, I try to replicate Corsetti, Dedola, and Leduc (2008)'s work about the transmission mechanism of the productivity shocks.
I already derive the first order conditions and solve the steady state problem. And I believe they are correct.
However, when I run Dynare, it keeps showing that some initial values are set to be zero because their exponents are smaller than 1.
Therefore, the Jacobian contains Inf or NaN.

I don’t understand why it can’t run…
Can anyone help? What should I do?

Thanks a lot.

Susie

Please post the mod-file

Dear Jpfeifer,

This is my mod file.

Thanks a lot.

Best,
Susie
CDL2008.mod (21.4 KB)

Dear Jpfeifer,

I rechecked the work and did some modifications.
But I encountered the same problem….

Thanks.

Best,
Susie
CDL(2008)new .mod (21.3 KB)

The second part of your initval-block is wrong. You assign to country 1 the country 2 values, but you did only define the country 1 values. That won’t work. Try executing with F9 in Matlab the parameter definitions and then the initval block. You will see that many variables you use have not yet been defined.

Dear Jpfeifer,

Thanks a lot.
Although the other problem occurs I think I can continuum working.

Thank you very much. :slight_smile:

Best regards

Susie