Many thanks prof Pfeifer for your help. I have another question related to the perfect foresight simulation. Is it possible for the model to not solve due to normalization problem? because I’m getting this warning: Normalization failed with cutoff, trying symbolic normalization…
If so, what is the best way to normalize the model?
The normalization is used for the block decomposition. You would not manually normalize anything. You should rather try whether any of the other solution algorithms work with your model.
Okay thanks