Multiple PAC equations and satellite VAR models in a single MOD file

Stochastic simulations Semistructural Modeling
1

Hi,

I am trying to aggregate each block of the semi-structural model, where each block is estimated separately.
In each block, it contains a PAC equation and its associated satellite VAR model composed with core variable shared by every satellite VAR model and block-specific variables.
After estimating PAC coefficients, I put all blocks into a single MOD file to solve the model and run simulation/forecast.
block_agg.mod (2.2 KB)

However, error comes up as follows…

ERROR: There are 16 equations but 14 endogenous variables!

This is inevitable because VARs share variables.

Does DYNARE currently not provide solving and running simulations/forecasts of the PAC type semi-structural model?

Best,
Seokil

2

@stepan-a and @sebastien need to have a look.