New Keynesian Model nonlinear

Steady state
#1

Hi all,

I am trying to run a code for Eric Sims’ notes about " A New Keynesian Model with Price Stickiness".
I have a problem with equations 1,2,3,9,10,11 of my model but I can’t identify it.
Can someone help me, please? The code is attached.

Thanks in advance! NKM_nonlinear.mod (1.5 KB)

#2

You are using pi_h_ss before it was ever defined.

#3

Hi thank you, I did not notice it while trying to fix the code, but when also setting pi_h=pi_ss in the steady state, the code does not run. Thank you anyway.

#4

You still did not correctly initialize. Use NKM_nonlinear.mod (1.5 KB)

Here, you need to fix

WARNING: in the ‘steady_state_model’ block, variable ‘pi’ is not assigned a value
WARNING: in the ‘steady_state_model’ block, variable ‘x_1’ is not assigned a value
WARNING: in the ‘steady_state_model’ block, variable ‘x_2’ is not assigned a value

See also https://github.com/JohannesPfeifer/DSGE_mod/blob/master/Gali_2015/Gali_2015_chapter_3_nonlinear.mod

#5

Thank you very much! Indeed I have realised the mistake regarding x_1 and x_2.
I have corrected it and now it works. I attach the new code in case you want to have a look at it.

Thank you for the tips!
NKM_nonlinear_revised.mod (1.7 KB)