Problem in NK-DSGE for Denmark and the Eurozone


I have build a large NK-DSGE two-country model for Denmark and the Eurozone.

The model combines with the model FiMod by Stähler & Thomas (2012) with the housing marked in Iacoviello (2005).

The model I end up with has 230 equations but only 228 endogenous variables. This is because I have added 26 equations and 24 variables to the model.

I can’t for the life of me figure out what is wrong. I have tried taking out some of the equations in pairs, but nothing helps.

I have attached my model in a zip-folder since it consists of 4 dynare files and 1 matlab file.
All equations in the “Model.mod”-file that have the comment " // *** " is one of the 26 equationa and 24 variables.

Thank you in advance. (20.4 KB)

As you stated yourself: you added 26 equations and only 24 unknowns.

If you have not forgotten any variables this implies that (at least) two of the added equations should supersede two of the other 204 equations. Which ones, I am afraid you will have to find out yourself.

I have looked trough the code a lot of times, but I still can’t figure out if I need to include two more variables or take two equations out.

If anyone have any ideas please post them.


Is Your attachment a model of Stähler & Thomas (2012)?
Can you please advise, where it can be downloaded?

Roman Semko