Goodmorning to everyone. I’m running Angelopulos, Jiang 2015. Dynare finds the steady state but Blanchard -Kahn conditions are not verified. Running the model diagnostic the error message get is :not enaugh imput arguments. What’s wrong? Thank you!!
lui.mod (4.6 KB)
I think I fixed something: now there is simply an eigenvalue lower than one. The equation said to be collinear is number 12. What’s the problem? Thank you
Please provide the most recent file
lui.mod (4.6 KB)
This is the most recent file. Eliminating the (+1) on r_b in equation six the problem is solved, but I don’t think this is the correct way to proceed. In any case there is something strange in my steady state values: some of them are different from the one mentioned in the paper (r_tilde=0.01 according to the authors), and some variables have a anegative value in steady state.
Can I also ask how to shock a parameter? (in a detetministic model). I should increase of one percentage point tau_vs (government subsidy)
thank you a lot
Check all your model equations again. For example,
A = ((A(-1))^(1-rho_a))*(A(-1)^(rho_a))+e_a;
does not make sense.