Hello Pfeifer ,

I am trying to calibrate IDEIR by using your **SGU 2003 codes**. As you do included only EDEIR. so, I am adding one line of equation to your codes give below but when I use a very small value of debt friction (psi_2 ) I don’t the error given below. However , in this case, I don’t get the second moments similar to others as it should be. It seems problem is in Equation number 10. I tried by removing exp() or log on interest rate but it did not work.

riskpremium = psi_2*(exp(d-d_bar)-1)+ (exp(d-d_bar))*d*psi_2;

I am getting the error below

Residuals of the static equations:

Equation number 1 : 0 : Eq. (4), Evolution of debt

Equation number 2 : 0 : Eq. (5), Production function

Equation number 3 : 0 : Eq. (6), Law of motion for capital

Equation number 4 : 0 : Eq. (24), Euler equation

Equation number 5 : 0 : Eq. (25), Definition marginal utility

Equation number 6 : 0 : Eq. (26), Labor FOC

Equation number 7 : 0 : Eq. (27), Investment FOC

Equation number 8 : 0 : Eq. (14), Law of motion for TFP

Equation number 9 : 0 : Eq. (23), country interest rate

Equation number 10 : -5.522e-05

Equation number 11 : 0 : p. 169, Definition of trade balance to ouput ratio

Equation number 12 : 0

Equation number 13 : 0 : Definition felicity function

Error using print_info (line 76)

The steadystate file did not compute the steady state

Error in check (line 76)

print_info(info, 0, options);

Error in SSEON3RD (line 215)

oo_.dr.eigval = check(M_,options_,oo_);

Error in dynare (line 235)

evalin(‘base’,fname) ;