example.mod (2.4 KB)

Hello,

After obtaining the first order conditons for the problems of households and firms, and the steady state (with hand and paper), I try to compute my model with parameter calibration based on Greenwood et al. (1997) : https://faculty.wcas.northwestern.edu/~lchrist/papers/aer_GHK.pdf

The issue is that I got 2 main problems :

- One of the eigenvalues is close to 0/0 (the absolute value of numerator and denominator is smaller than 0.0000!), with the following : If you believe that the model has a unique solution you can try to reduce the value of qz_zero_threshold.

- How can I reduce the value of qz_zero_threshold manually ?

- My steady state results are negative. It should not be for some variables like consumption, factor production, output, etc.

(Since all the variables are implicitely defined in logs, I take the exp, the SS results are reported in logs, and the log of values less than 1 is negative, maybe that is the reason ?)

PS: the command model_diagnostics(M_,options_,oo_) gives : No obvious problems with this mod-file were detected.

I don’t know if there is other problems. Your help would be much appreciated !