Parameter Problem2

GH2b.mod (3.5 KB)
GH2b_ss.m (1.8 KB)
GH2b_steadystate.m (1.5 KB)
param_GH2b.m (807 Bytes)
Dear professor,
I have attached the parameter file. I am doing a two sector model with Gertler bank. I found a very strange thing. The model could run well with the initially set parameter. However, when I change any parameter value, the model reports error. For example, the initial value is 0.381, the model could run well. When I change it slightly to 0.38, the model reports error.Other parameters are similar. So, I could not change any parameter value,I don’t know the reason. Could you help me to solve this problem, Thanks.

When I run your code with theta=0.381 I get

Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: indeterminacy.