My equation 1 is ‘y’ but when I am checking the residuals, instead of ‘y’ it is showing “1”. I was wondering if this is a problem.
Residuals of the static equations:
Equation number 1 : 0 : 1
Equation number 2 : 0 : i
Equation number 3 : 0 : pi
Equation number 4 : 0 : y_nat
Equation number 5 : 0 : y_gap
Equation number 6 : 0 : y_hat
Equation number 7 : 0 : y
Equation number 8 : 0 : r_real
Equation number 9 : 0 : r_real_ann
Equation number 10 : 0 : m_growth_ann
Equation number 11 : 0 : pi_ann
Equation number 12 : 0 : z
Equation number 13 : 0 : nu
Equation number 14 : 0 : a
Equation number 15 : 0 : g
Equation number 16 : 0 : dy
Equation number 17 : 0 : pinfobs
Equation number 18 : 0 : robs
I would need to see the file.
Thank you for replying. Here are the files. us_data.mat (11.6 KB) woodford.mod (3.0 KB)
You are relying on automatic equation numbering instead of using your own tags. This comes with limitations. Your first equation has
on the left-hand side. If if were just
y_gap, Dynare would use that for the tag. I would recommend using
to label the equation.
I updated the model us_data.mat (11.6 KB) woodford.mod (3.0 KB) and it is not working now. Could you please help?
Before estimating the model, make sure simulations work. Are you sure about your timing?
for example looks strange.
Thank you for your reply.
I already have figured that mistake. I have made the equations governing v and v_tilda lagged back a period so that they are state variables rather than forward-looking variables. My model is working now.