Maxit has been reached

Hi Dynare users,

I’m new to Dynare and trying to simulate an open economy OLG model with private and public capital. The following text appears at the end of the simulation and I’m wondering if it means that I’m doing something wrong? Do I need to change the initval? I’m using Dynare 4.3.3 and MATLAB 7.10.0 (R2010a).

SOLVE: maxit has been reached

olg.mod (756 Bytes)

Your model does not converge. Using stoch_simul instead of simul shows that your model is not even locally determinate. My guess is that you are having a problem with the timing of your states.