1)The steady states values are NAN.

2)Also, no Impulse Response Function (IRF) results available after processing.

apica.mod (4.2 KB)

1)The steady states values are NAN.

2)Also, no Impulse Response Function (IRF) results available after processing.

apica.mod (4.2 KB)

Please help

1)The steady states values are NAN.

2)Also, no Impulse Response Function (IRF) results available after processing.apica.mod (4.2 KB)

Warning: Matrix is singular to working precision.

In evaluate_steady_state (line 261)

In steady_ (line 55)

In steady (line 80)

In apica.driver (line 840)

In dynare (line 293)

Residuals of the static equations:

Equation number 1 : NaN : r

Equation number 2 : NaN : rhouse

Equation number 3 : NaN : rfirm

Equation number 4 : NaN : reer

Equation number 5 : NaN : CRP

Equation number 6 : NaN : AD

Equation number 7 : NaN : consump

Equation number 8 : NaN : inv

Equation number 9 : NaN : x

Equation number 10 : NaN : m

Equation number 11 : NaN : inflation

Equation number 12 : NaN : ulc

Equation number 13 : NaN : w

Equation number 14 : NaN : n

Equation number 15 : NaN : unemp

Equation number 16 : NaN : capul

Equation number 17 : NaN : rpinv

Equation number 18 : NaN : E_INFLATION

Equation number 19 : NaN : past_inv

Equation number 20 : NaN : E_REER

Equation number 21 : NaN : L_gdp

Equation number 22 : NaN : L_nfa

Equation number 23 : NaN : infl_tar

Equation number 24 : NaN : rworld

Equation number 25 : NaN : infworldexp

Equation number 26 : NaN : govcons

Equation number 27 : NaN : houseinc

Equation number 28 : NaN : Labour

Equation number 29 : NaN : Long_unemp

Equation number 30 : NaN : vix

Error using print_info (line 32)

The steady state has NaNs or Inf.

Error in steady (line 102)

print_info(info,options_.noprint, options_);

Error in apica.driver (line 840)

steady;

Error in dynare (line 293)

evalin(âbaseâ,[fname â.driverâ]) ;

Hello, without looking much in detail, I see that your last AR(1) shock equation has no persistence parameter. Also, I am not sure what you seek when defining the `infl_tar=3`

as a variable when you can use as parameter. I hope it helps.

Thank you for the response. However , post the changes, pre-processing failed. apica.mod (4.2 KB)

dynare apica.mod

Using 64-bit preprocessor

Starting Dynare (version 4.6.1).

Calling Dynare with arguments: none

Starting preprocessing of the model file âŚ

WARNING: A parameter was used with a lead or a lag in the model block

Error: dynare not used in the model block

Error using dynare (line 282)

Dynare: preprocessing failed

if status

% Should not use âerror(result)â since message will be truncated if too long

error(âDynare: preprocessing failedâ

Hello, the warning message says that a parameter was used with a lead or a lag. I guess that you changed `infl_tar`

as a parameter, but you kept the `(+1)`

and `(-1)`

in the equations.

Thank you for responding. However, still the error persists. apica.mod (4.2 KB)

dynare apica.mod

Using 64-bit preprocessor

Starting Dynare (version 4.6.1).

Calling Dynare with arguments: none

Starting preprocessing of the model file âŚ

Error: dynare not used in the model block

Error using dynare (line 282)

Dynare: preprocessing failed

Please help . Made the changes that you recommended.

dynare apica.mod

Using 64-bit preprocessor

Starting Dynare (version 4.6.1).

Calling Dynare with arguments: none

Starting preprocessing of the model file âŚ

Error: dynare not used in the model block

Error using dynare (line 282)

Dynare: preprocessing failed

Always post the full error message. In your case, it says that the variable `dynare`

is not used in the model block. You can check that you define a variable with that name.

Hello,

- You didnât give a value to
`rho_vix`

. - There is a variable called
`dynare`

that you donât use in the model block.

Best, FgB

Thank you. I couldnât understand your point number 2. I havenât used any variable named âdynareâ in the model block.

Defining a variable with the name dynare? I really donât understand.

What we, Johannes and I mean, is that in your variables block just at the beginning of your MOD file, you have a variable called `dynare`

, I think it was a typo you made, search for it and delete it, and add a value to the `rho_vix`

, that would make it work.

Thank you so much. It worked .

Grateful to you and Johannes.

Shall ask more queries as and when they arise in future.

Regards

1 Like

if i want to keep inflation expectations as exogenous this time, what changes should i make in the model. please suggest . Thank you.

If it is not a parameter anymore, then it has to be included in the var or varexo blocks. Another option is to not include it neither in the var nor varexo blocks but inside the model block as a model-local variable with `#`

before the expression that defines the variable (page 27 of the Dynare Manual).

Thank you so much for responding. Shall work on this and get back soon for further help.

Regards

You should not approach this from a technical perspective, but from an economic one. What you are asking is inconsistent with rational expectations modeling.

Thank You Sir for discussing and replying. I understand the economic perspective of it but I have to determine the role played by only the expectations part in the economy. I will determine that by analyzing the difference between the rational expectations consistent model and this one.

Please keep guiding me with the exogenous expectations part like you did in the previous model. Extremely grateful for your guidance.

Regards

Your model should contain the contemporaneous variables and the expectations. You should be able to abitrarily specify the expectations part (of course subject to the BK conditions still being satisfied)