I am working on an extension of the model proposed by Tebaldi and Elmslie (2006), which analyzes the relationship between institutions and innovation. My goal is to incorporate leisure choice, so that households decide not only between consumption and investment, but also between consumption, investment, and leisure. It’s similar to Romer’s model, but you establish a constraint on the amount of innovation due to the institutions. However, I am having issues running the code in Dynare.
Below is my code. I would greatly appreciate any help in identifying the problem
Hey! Hope you’re doing fine. I did add the steady state code after that. The error is this one:
Found 13 equation(s).
Evaluating expressions…
Computing static model derivatives (order 1).
Normalizing the static model…
Normalization failed with cutoff, trying symbolic normalization…
Finding the optimal block decomposition of the static model…
5 block(s) found:
4 recursive block(s) and 1 simultaneous block(s).
the largest simultaneous block has 9 equation(s)
and 9 feedback variable(s).
Computing dynamic model derivatives (order 2).
Normalizing the dynamic model…
Finding the optimal block decomposition of the dynamic model…
5 block(s) found:
4 recursive block(s) and 1 simultaneous block(s).
the largest simultaneous block has 9 equation(s)
and 7 feedback variable(s).
Preprocessing completed.
Preprocessing time: 0h00m00s.
error: ‘Tebaldi’ undefined near line 1, column 1
error: called from
dynare at line 310 column 5