Hello, I have an issue to run my scripts. It still shows errors but I am not able to recognize them. Could anyone help me? I am attaching my mod file and also the equations of the model which I did manually. I need to complete it today.
-
- List item
RBCcapitalutilization.mod (2.1 KB)
- List item
The model equations created manually :
1/c_t =λ_t
θ/(1-N_t )=W_t λ_t
∅_1+∅_2 (z_(t-1) )=R_t
E_t β{λ_(t+1)/λ_t [R_(t+1 z_(t+1) )+(1-δ(z_(t+1) ))]}=γ_x
A_t z_t^α K_t^α N_t^(-α) (1-α)=W_t
α A_t z_t^(α-1) K_t^(α-1) N_t^(-α)=R_t
Y_t=A_t 〖〖(z_t K〗t)〗^α N_t^(1-α)
λ_x K(t+1)={1-δ(z_t)}K_t+I_t
C_t+I_t=Y_t
a_(t+1)=ρa_t+ε_(t+1)
N_t+L_t=1
β θ γ α δ ρ η σ ∅
0.984 3.48 1.004 2/3 0.025 0.979 1 0.0072 1.65
What I did in Dynare:
var A C K N L W Y I R LAMBDA z;
varexo e;
parameters alfa betas delta rho eta theta gammax fi1 fi2 Kss Css Nss Lss Ass Wss LAMBDAss Yss Iss Rss;
alfa = 0.667;
betas = 0.984;
delta = 0.025;
rho = 0.979;
eta = 1;
gammax = 1.004;
fi1 = 1
fi2 = 1.65
%Compute the Steady State
Ass = 1;
Nss = 0.2;
Lss = 1-Nss;
Rss = gammax/betas + delta -1;
Kss = (Rss/alfa)^(1/(alfa-1))Nss;
Iss = (gammax-1+delta)Kss;
Wss = (Kss/Nss)^alfa(1-alfa);
Yss = AssKss^(alfa)Nss^(1-alfa);
Css = Yss - Iss;
LAMBDAss = 1/Css;
theta = WssLAMBDAss*(1-Nss);
zss = 1;
model;
% 1. FIRST ORDER CONDITION : C
1/exp(C) = exp(LAMBDA);
% 2. FIRST ORDER CONDITION : N
theta/(1-exp(N))=exp(W)*exp(LAMBDA);
% 3. FIRST ORDER CONDITION FOR UTILIZATION : z
fi1+fi2*exp(z(-1))=exp(R)
% 4. FIRST ORDER CONDITION : K(+1)
betas*(exp(R(+1))exp(z(+1))+(1-delta(z(+1)))= exp(LAMBDA)/exp(LAMBDA(+1))*gammax;
% 5. LABOR DEMAND
exp(A)*exp(z)^(alfa)exp(K)^(alfa)(1-alfa)*exp(N)^(-alfa) = exp(W);
% 6. MARGINAL PRODUCTIVITY OF CAPITAL
exp(A)*exp(z)^(alfa-1)exp(K)^(alfa-1)(alfa)*exp(N)^(1-alfa) = exp(R);
% 7. Production function
exp(Y) = exp(A)*exp(z)^(alfa)*exp(K)^(alfa)*exp(N)^(1-alfa);
% 8. Market clearing
exp(C) + exp(I) = exp(Y);
% 9. LAW OF MOTION FOR THE CAPITAL STOCK
exp(LAMBDA)exp(K(+1)) = (1-delta(exp(z))*exp(K) + exp(I);
% 10. TECHNOLOGY SHOCK PROCESSUS
(A) = rho*(A(-1)) + e;
% 11. TIME CONSTRAINT
exp(N) + exp(L) = 1;
end;
initval;
C = log(Css);
K = log(Kss);
N = log(Nss);
W = log(Wss);
Y = log(Yss);
I = log(Iss);
A = log(Ass);
LAMBDA = log(LAMBDAss);
L = log(Lss);
R = log(Rss);
z = log(zss);
end;
shocks;
var e;
stderr 0.0072;
end;
steady;
stoch_simul(hp_filter=1600,order=1,irf=50);