Hi,
I am trying to solve a ramsey policy problem in a closed economy setup.I got the first order conditions and the steady states and I went ahead in coding the problem in Dynare version 4.2.0 (with Matlab version R2010a in windows). However after having finished coding in dynare, when I run the model.mod file which I have written I get the following error message.
??? Error using ==> lnsrch1 at 53
Some element of Newton direction isn’t finite. Jacobian maybe singular or there is a
problem with initial values
Error in ==> solve1 at 127
[x,f,fvec,check]=lnsrch1(xold,fold,g,p,stpmax,func,j1,j2,varargin{:});
Error in ==> dynare_solve at 124
[x,info]=solve1(func,x,j1(r(i):r(i+1)-1),j2(r(i):r(i+1)-1),jacobian_flag,
bad_cond_flag, varargin{:});
Error in ==> dr1 at 124
[oo_.steady_state,info1] = dynare_solve(‘dyn_ramsey_static_’, …
Error in ==> resol at 145
[dr,info,M_,options_,oo_] = dr1(dr,check_flag,M_,options_,oo_);
Error in ==> stoch_simul at 66
[oo_.dr, info] = resol(oo_.steady_state,0);
Error in ==> ramsey_policy at 25
info = stoch_simul(var_list);
Error in ==> model at 160
ramsey_policy(var_list_);
Error in ==> dynare at 132
evalin(‘base’,fname) ;
So I decided to write a matlab file called model_steadystate.m to solve the problem. Now when I run the model.mod file again I get the following error message.
??? Reference to non-existent field ‘instruments’.
Error in ==> dr1 at 94
instruments = options_.instruments;
Error in ==> resol at 145
[dr,info,M_,options_,oo_] = dr1(dr,check_flag,M_,options_,oo_);
Error in ==> stoch_simul at 66
[oo_.dr, info] = resol(oo_.steady_state,0);
Error in ==> ramsey_policy at 25
info = stoch_simul(var_list);
Error in ==> model at 160
ramsey_policy(var_list_);
Error in ==> dynare at 132
evalin(‘base’,fname) ;
I am attaching my model.mod and model_steadystate.m files. My main aim is to get the optimal policy and transition functions and the IRFs. Any help or comment is greatly appreciated. I have a paper to submit within a week, so anyone please help me out!!.
model.mod (1.49 KB)
model_steadystate.m (917 Bytes)