Hi,

We are starting to introduce in this computacional world

We are replaying a model of traded and nontraded goods of Wickens (2008) on Octave and the program run the codes, but at the end appear: “error: Impossible to find the steady state. Either the model doesn’t have a steady state, there are an infinity of steady state, or the guess values are too far from the solution”.

So we try to give another initial values according with the theory, but it don’t works.

We do the system of ecuations simple, but the ecuation 14 and 15 require that the shocks EZt and EZn have a special distribution is a normal distribution with media 0, and variance is a matrix of:

(0 delta

delta 0)

but I don’t know how introduce a distribution in the program and maybe this cause the before mistake.

So if your can guide some little and tell us what we can do, we apreciate that .

Thanks!

PD: sorry by my english.

trabajotynt.mod (1.7 KB)