Problem with new keynesian model

Dynare help (legacy posts)
1

Dear all,

i’m trying to run a new keynesian model with endogenous capital accumulation. As i want to see the effecty by shocks on all variables, i don’t use a three equation specification (as fe. Gali), but specify all equations.
Running the model yields the following error code:

Starting Dynare (version 4.1.3).
Starting preprocessing of the model file …
ERROR: erweitertesModell.mod:63.120: character unrecognized by lexer

Can anybody help me? I’m quite new in using Dynare, maybe i also made a mistake by extending the simple basic model by endogenous capital accumulation
Thank you!
new keynesian model.mod (3.62 KB)

2

Hi,
as the error says, there is a mistake in line 63, column 120. You wrote “rk” as “r k”. If you correct this mistake Dynare will tell you that there is also a wrong bracket in this equation. Moreover, do not uncomment the steady command and set order to 1 in stoch_simul as otherwise the large variance of your shocks will most probably lead to explosive behavior (or decrease the shock size).

3

Hi,
ah ok i think, i found the error. Thank you very much for your help.