Numbers do not add up to 100 due to non-zero correlation of simulated shocks in small samples

Stochastic simulations
1

Hello all,

I am having “foreseen once and for all increase in kappa” in my model with initval kappa=0.7 and endval kappa=0.8. However, I face the problem of

Note: numbers do not add up to 100 due to non-zero correlation of simulated shocks in small samples

Could someone tell me where the problem lies in? Thanks. lcr_permanent.mod (41.8 KB)

2
  1. Why are you running stochastic simulations for a perfect foresight model?
  2. The note is not an error message, just an information about small sample properties.
3

Thanks for your reply, I corrected it to simul() and I run into “last iteration provided complex number error”. I specified the same steady-state values for initial and terminal conditions for the variable that has a complex number. Do I need to find a steady-state value for the linearized version?