selfmademodel2_log_crra.mod (663 Bytes)
I’m a new learner of DSGE and this is a modified version of the standard DSGE model(I change the original log-utility function into a log+CRRA one). Thus I cannot find calibration for “sigma” in the textbook so I set one myself and it got the error saying:
The Jacobian matrix evaluated at the steady state contains elements that are not real or are infinite
Error check (line 76)
print_info(info, 0, options);
Error selfmademodel2_log_crra (line 161)
oo_.dr.eigval = check(M_,options_,oo_);
Error dynare (line 235)
Is it because of my calibration or some other problem??Plz help me, thank u guys very much!
(btw:sigma is the relative risk aversion and sigmaa is the standard error of e)
I think there is more than one problem in your mod file.
The timing of the variables is wrong. Predetermined variables must be in t-1. For instance, the capital stock in the production function should be
K(-1) and not
K. You have the same problem in the law of motion for the capital stock which should be:
The Euler equation (the fourth equation) looks wrong. First there are again timing issues: (i) the return of capital should be expected (
R(1) instead of
R), (ii) the consumption ratio should be shifted one period in the future (
C(1)/C instead of
C/C(-1)). Also the depreciation rate is missing and the elasticity of the marginal utility \sigma is not where it should be (it should be a power on the consumption ratio).
Maybe the value of \sigma is to low.
You should first check your model…
thank u stephane, I’ve checked my model euqation and there were indeed a mistake and I got my IRF. However it is not about the timing issues, I think according to my previous equations they are correct, so maybe there are problems about my previous equations? Hope u can tell me! Thank u again!