Hello to everyone,
I am trying to construct a dynare file for the model of Gertler (1999) ideas.repec.org/p/cvs/starer/97-14.html. I do not have any problem with the laissez faire economy and it works perfectly. Then, when adding the government it works for the steady state determination but it fails in running the simulation after the permanent shock on exogenous variables.
The model is right because when I transform two exogenous deterministic variables in stochastic processes both the steady state (identical to the deterministic one) and the simulation work.
When executing the file (in Octave) the error that I receive is:
“error: A(I): Index exceeds matrix dimension.
error: called from:
amic.m at line 16, column 6
error: /usr/share/dynare/matlab/sim1.m at line 71, column 20
error: /usr/share/dynare/matlab/simul.m at line 93, column 9
error: /home/alessandro/Desktop/Final_dissertation/Dynare/gertler_SSS_det.m a
t line 182, column 1
error: /usr/share/dynare/matlab/dynare.m at line 134, column 1”
I suspect it may be a bug of dynare.
Thank you very much,
gertler_SSS_det.mod (1.28 KB)