I setup the TANK model regarding Ramsey allocation include distortinary tax(labor, capital and consumption), government debt(state-incontingent) and government spending(government purchasing, government investment and transfer expenditure).
Policy variables paths are determined of government optimal choose { C, N, K } as a Ramsey Planner.
Problem by hand-write down is solved, but using dynare, steady state is NaN or inf.
For this problem solve, uploading my .mod file and please advisory to solve.
And attatched to dynare generating command.
Best Regards,
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Starting Dynare (version 5.2).
Calling Dynare with arguments: none
Starting preprocessing of the model file …
WARNING: Ramsey_GKT_TANK_mk.mod:17.12-26.5: Symbol TR_ss declared twice.
WARNING: Ramsey_GKT_TANK_mk.mod:17.12-26.24: Symbol rho_R declared twice.
WARNING: Ramsey_GKT_TANK_mk.mod:17.12-26.31: Symbol phi_y declared twice.
WARNING: Ramsey_GKT_TANK_mk.mod:17.12-26.39: Symbol phi_pi declared twice.
WARNING: Ramsey_GKT_TANK_mk.mod:452.1-454.38: The ‘simul’ statement is deprecated. Please use ‘perfect_foresight_setup’ and ‘perfect_foresight_solver’ instead.
WARNING: A parameter was used with a lead or a lag in the model block
Substitution of endo leads >= 2: added 33 auxiliary variables and equations.
Substitution of endo lags >= 2: added 30 auxiliary variables and equations.
Found 123 equation(s).
Evaluating expressions…done
Computing static model derivatives (order 1).
Computing dynamic model derivatives (order 1).
Processing outputs …
done
Preprocessing completed.
Residuals of the static equations:
Equation number 1 : 0 : 1
Equation number 2 : NaN : 2
Equation number 3 : NaN : 3
Equation number 4 : NaN : 4
Equation number 5 : NaN : 5
Equation number 6 : NaN : UcR
Equation number 7 : 0 : 7
Equation number 8 : 0 : 8
Equation number 9 : 1 : 9
Equation number 10 : NaN : Lamda
Equation number 11 : NaN : LamdaT16
Equation number 12 : 0 : mc
Equation number 13 : 0 : D
Equation number 14 : NaN : 14
Equation number 15 : NaN : UnR
Equation number 16 : NaN : UcH
Equation number 17 : NaN : UnH
Equation number 18 : NaN : UcnR
Equation number 19 : NaN : UccR
Equation number 20 : NaN : UnnR
Equation number 21 : NaN : UncR
Equation number 22 : NaN : UccH
Equation number 23 : NaN : UcnH
Equation number 24 : NaN : UnnH
Equation number 25 : NaN : UncH
Equation number 26 : NaN : Ug
Equation number 27 : 0 : Y
Equation number 28 : 0 : Yn
Equation number 29 : 0 : Yk
Equation number 30 : 0 : Ykg
Equation number 31 : 0 : Ynn
Equation number 32 : 0 : Ynkg
Equation number 33 : 0 : Ykkg
Equation number 34 : 0 : Ynk
Equation number 35 : 0 : Ykgkg
Equation number 36 : 0 : Ykk
Equation number 37 : 0 : SP
Equation number 38 : 0 : SP1
Equation number 39 : 0 : SG
Equation number 40 : 0 : SG1
Equation number 41 : 0 : N
Equation number 42 : 0 : C
Equation number 43 : NaN : TR
Equation number 44 : NaN : 44
Equation number 45 : 0 : 45
Equation number 46 : NaN : 46
Equation number 47 : 0 : 47
Equation number 48 : 0.01322 : R
Equation number 49 : NaN : G
Equation number 50 : NaN : mu1
Equation number 51 : 0 : mu2
Equation number 52 : NaN : 52
Equation number 53 : NaN : 53
Equation number 54 : NaN : 54
Equation number 55 : NaN : 55
Equation number 56 : NaN : 56
Equation number 57 : NaN : mu4
Equation number 58 : NaN : mu6
Equation number 59 : NaN : mu7
Equation number 60 : 0.06 : theta
Randomize initial guess…
error: print_info (line 32)
The steady state has NaNs or Inf.
error: check (line 48)
print_info(info, 0, options);
error: Ramsey_GKT_TANK_mk.driver (line 1521)
oo_.dr.eigval = check(M_,options_,oo_);
error: dynare (line 281)
evalin(‘base’,[fname ‘.driver’]);
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Ramsey_GKT_TANK_mk.mod (21.6 KB)
