Rational expectations open economy model simulation

Dynare contributions and examples
1

Hello,

I’m trying to simulate a RBC model where an economy is hit by a negative leverage shock (the model is inspired from KM97 and PW2012 already talked about in the forum).
In writing my code i used some of the files posted in the forum, but still my simulation doesn’t give any result.

Here attached my mod file.

Any help will be appreciated :neutral_face:
RBC.mod (1.68 KB)

2

You use an undefined variable, i.e. R in line 20, column 4. That’s why Dynare says

[quote]ERROR: RBC.mod:20.4-8: To use an external function ® within the model block, you must first declare it via the external_function() statement.

??? Error using ==> dynare at 122
DYNARE: preprocessing failed[/quote]

3

Hello,

yes you are right. Thank you for your reply.