Hi,
Thanks again, professor - I tried to solve the steady state values once again and obtained this results hence there are still issues with the steady states. It would be a great help if you had the time to provide me with some feedback on this as I’m stuck and cannot see where I do it wrong.
rbc_adam_new.mod (1.7 KB)
Again, why can’t you compute the steady state analytically. The model does not seem that complicated.
Thanks for taking your time. I started all over by rechecking the equations again and ended up with the following results where the timing error is the problem as
STEADY-STATE RESULTS:
Y 0.0858045
Yc 2.65455
Yi 0.332908
C 0.0807175
Inv 0.00508691
Hc 0.64
Hi 0.0170152
W 0.0807175
Rc 0.0287057
Ri 0.00371345
Qc 0.0152802
Qi 0.00197249
Kc 33.2908
Ki 0.999995
X 0.0139999
Z 0.999995
EIGENVALUES:
Modulus Real Imaginary
0.986 0.986 0
0.989 0.989 0
1.004 1.004 0
1.813 -1.813 0
2.909 2.909 0
1.146e+12 1.146e+12 0
Inf -Inf 0
Inf Inf 0
There are 6 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)
The rank condition ISN’T verified!
Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
If you had the time i really appreciate if you could provide me with some feedback (any kind is better than nothing) of how I can move forward as the time is running faster and I have a deadline (hopefully) to reach in time.
Thanks again.
rbc_adam_new.mod (2.2 KB)
-
Q_i is not predetermined.
- Your process for Z is explosive.
rbc_adam_new.mod (2.2 KB)
Given that it runs with a cgamma<1
, I guess you need to properly detrend the model.
Thank you so much, professor for taking your time to help med - I really appreciate it.
Just some follow up-questions:
- What impact does it have for the results that Z is explosive?
- How do you suggest I could detrend the model?
- I obtain NaN value for Hc - is it because it is a constant parameter?
POLICY AND TRANSITION FUNCTIONS
Hc
Constant 0.640000
Kc(-1) 0
Ki(-1) 0
Z(-1) 0
eps_Z 0
Thanks in advance!
Thank you so much for your help!