Small Open Economy Iacoviello (2005)

Hi all,

Wondering if someone can help me with my dynare code. I have designed a small open economy version of Iacoviello (2005). Attached is a picture of the 25 equations that consist of the model. Also attached is my dynare code. Matlab 2015b constantly says that my preprocessing has failed. I have 25 endogenous variables and 25 equations, why is this still coming up?

Thank you

disso3.mod (3.1 KB)
ATT00001.txt (25 Bytes)

The error is

In that line, there is a bracket after BETA that never closes

I apologize, I didn’t know which section my query belonged in. I appreciate your speedy response. I modified the bracketed term, and another small error.

Its is now unable to find a steady state.

Kind regards,


Nottingham university