Issue with code

Stochastic simulations
1

var
c l k y w r iv
;

parameters

ALPHA
BETA
DELTA
COEFF
;

% parameters caliberation

ALPHA = 0.35;
BETA = 0.99;
DELTA = 0.025;
COEFF = 1;

model;
% consumption
c (+1) = BETA * (1+ r (+1) - DELTA (+1)) c;
%2
w/c = COEFF/1-l;
%3
r = ALPHA * y/k;
%4
w = (1- ALPHA)*y/n;
%5
n = l;
%6
k = a;
%7
iv = k (+1) - (1-DELTA)k;
end
;

Getting Error

work3006.mod: line 23, col 42: syntax error, unexpected NAME

2

You are missing * to indicate multiplication by c at the end of line 23 and further down a multiplication by k also at the end of a line

3

Thankyou.

4

Starting preprocessing of the model file …
WARNING: A parameter was used with a lead or a lag in the model block
Found 7 equation(s).
Evaluating expressions…done
Computing static model derivatives (order 1).
Computing dynamic model derivatives (order 2).
Processing outputs …
done
Preprocessing completed.

What does the warning say?

5

In your Euler equation, you have DELTA (+1) appearing, which is a parameter with a lead.

6

Thankyou. Will that be an issue?

7

No, but it usually indicates that you made a mistake here by shifting a fixed number.

8

Okay, thankyou.