Problem replication Benes et.al. (Urgent!)

Dynare help (legacy posts)
1

Dear friends,

I am having problems replicating Benes et. al. (2014) in Dynare for Matlab. Using the original calibration which is provided by the paper I have this problem “Blanchard Kahn conditions are not satisfied: no stable equilibrium”. When I lower the value of the parameter “Beta” to 0,00001 it starts running.

Can you please help me??!! It is really urgent!

Thank you!!
Benes_Berg_Portillo_Vavra_2014.pdf (1.26 MB)
tpfinal.mod (2.56 KB)

2

This sounds like a timing mistake. Try identifying the predetermined stocks in that model and check whether you correctly entered them.