Hi all,
I’m running stochastic simulations of a large-scale model, similar to the ECB’s NAWM, with around 600 equations. When running first- and second-order perturbation, Dynare is able to solve the model. However, when attempting a third-order perturbation, I encounter the following error:
dynare:k_order_perturbation: Caught TL exception
k_order_pert was unable to compute the solution
I’ve tried different versions of Dynare without success.
Does anyone have any insights into what might be causing this issue?
Best,
Carlos
Can you provide me with the code to test the issue?
Dear Prof. Pfeifer,
Since the code is not my exclusive property, I need to request permission to share it. I will get back to you as soon as possible and, if allowed, share it with you via email, if that’s acceptable.
In the meantime, could I ask for a baseline reference or example of a stochastic volatility application in Dynare (if possible, better for a medium-scale model)? The purpose of computing a higher-order perturbation for the abovementioned model is to incorporate volatility shocks related with international trade. It would be beneficial see how this can be implemented on Dynare for similar models.
Best regards,
Carlos