Problem with Chun Chang, Zheng Liu and Mark Spiegel(2015)

General DSGE Modeling Replication Attempts
1

wp2012-13supplement_replication_files.zip (275.6 KB)
Hi Professor,

I downloaded the code for the paper by Chun Chang, Zheng Liu, and Mark Spiegel (2015) from their personal website. When I ran it, I encountered the following errors:
WARNING: Bench.mod:213.1-91: The ‘ramsey_policy’ statement is deprecated. Please use ‘ramsey_model’, ‘stoch_simul’, and ‘evaluate_planner_objective’ instead.
WARNING: in the ‘steady_state_model’ block, variable ‘by’ is not assigned a value
Ramsey Problem: added 26 Multipliers.
Found 26 equation(s).
Found 53 FOC equation(s) for Ramsey Problem.
Evaluating expressions…done
Computing static model derivatives (order 1).
Computing dynamic model derivatives (order 2).
Computing static model derivatives (order 3).
Processing outputs …
done
Preprocessing completed.

evaluate_planner_objective: the planner discount factor is not strictly smaller than 1. Unconditional welfare will not be finite.
Unrecognized field name “ghx”.

Error in evaluate_planner_objective (line 142)
Gy = dr.ghx(nstatic+(1:nspred),:);
^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Error in ramsey_policy (line 55)
oo_.planner_objective_value = evaluate_planner_objective(M_,options_,oo_);
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Error in Bench.driver (line 701)
ramsey_policy(var_list_);
^^^^^^^^^^^^^^^^^^^^^^^^
Error in dynare (line 278)
evalin(‘base’,[fname ‘.driver’]);
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Error in plot_irfs (line 4)
dynare Bench.mod
^^^^^^
Could you please help me check what should I do? I replaced the ramsey_policy with ramsey_model, but the error still persists. Thank you very much.

Best wishes,
Jia

2

If you use

planner_objective(C + log(C_ss) - (Phi_l*L_ss^(1+eta)/(1+eta))*exp((1+eta)*L));
ramsey_model(planner_discount=1, instruments=(R));
steady;

you will see that the steady state does not solve for two equations.

3

Thank you, professor. I’ll take some time to look through the code and work on resolving the issue.

Jia