Dear all,

I am trying to write a model with disaster risk and recursive preferences. I already tried the model with CRRA preferences which worked for me but with recursive preferences the following error occurs:

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 : 0

…

Do you have any recommendations on what’s wrong with my model? Thanks in advance for your help.

Here is my .mod file:

FinalModelEZW.mod (26.4 KB)

Best

Jo