I am trying to replicate Fagan et al.'s (2013) model in Journal of Applied Econometrics.
Because there are lead(s) and lag(s), dynare created the Auxiliary variable(s) automatically. and it reports errors says : There are 9 equations but 10 endogenous variables!
I checked my model over and over again. couldn’t see what went wrong. please help!!!
gracie_up_to_date.mod (2.86 KB)