I have a problem replicating the Smets/Wouters (2007) model. By doing so I took the code from Mr. Pfeifer as an inspiration.
While starting by estimating simplified versions of the model, which worked well, in my current version I first included the monetary policy rule. Now there occurs the typical mistake of too many eigenvalues larger 1 than forward-looking variables.
I know from earlier questions in this forum that this is probably due to a timing problem. But I cannot detect my mistake. Maybe you have an idea how to solve the problem.
Here you will find the last version which worked:Smets_Wouters_2007_2_modi.mod.mod (7.4 KB)
And here the newest version, which does not work anymore:
Smets_Wouters_with_MPR.mod (8.8 KB)
Thank you very much for your help!