Productivity shocks and m-policy in a two-country model

Dynare help (legacy posts)
1

Hi there

I’ve tried to run the code from the following paper:

dynare.org/wp-repo/dynarewp029.pdf

CAM22.mod (3.32 KB)

Can anyone tell me what’s wrong? I think there is no typo, i’ve just copied the code from the paper?

Error:

STEADY: numerical initial values or parameters incompatible with the following equations
7 8 22

Check whether your model in truly linear

Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : NaN
Equation number 4 : NaN
Equation number 5 : 0
Equation number 6 : NaN
Equation number 7 : NaN
Equation number 8 : NaN
Equation number 9 : 0
Equation number 10 : NaN
Equation number 11 : 0
Equation number 12 : NaN
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : 0
Equation number 16 : 0
Equation number 17 : 0
Equation number 18 : NaN
Equation number 19 : NaN
Equation number 20 : NaN
Equation number 21 : 0
Equation number 22 : NaN
Equation number 23 : 0

Error using print_info (line 80)
The steady state contains NaN or Inf

Error in steady (line 92)
print_info(info,options_.noprint, options_);

Error in CAM22 (line 303)
steady;

Error in dynare (line 180)
evalin(‘base’,fname) ;

Thanks in advance for your help!

Dave

2

As Dynare warns

[quote]Warning: Some of the parameters have no value (rho) when using steady. If these parameters are not initialized in a
steadystate file or a steady_state_model-block, Dynare may not be able to solve the model…
[/quote]

you did not initialize

3

Thank you very much! :blush: