Hello everyone, I have written a simple two-sector general equilibrium model, but I cannot solve it , the error says " numerical initial values incompatible with the following equations 1 2 8 11" . I have tried many ways, both deterministic and stochastic versions of the model. Tried to change initial values, computed steady state value of k in excel, and added it as initval, but it does not help as well. Can anyone help me with this problem?
Here is the mod file
a1model.mod (737 Bytes)
If a variable cannot be 0 in steady state, set an initval different from zero. Take the first equation. You divide by la, but la is initialized to 0. Dividing by 0 gives the error message.
Thank you for response, I have corrected the issue with initial values, but still, I do not get the solution, again a problem with initial values (I have put values close to the steady state ones).
here is the revised mod file
a1model.mod (801 Bytes)