Hello Dynare Forum, I am new to dynare/Matlab and are struggeling a bit to find a steady state solution in one of my .mod files. What is the standard approach to solve this? Namely it is in the file “fixedmundtlig.mod”. Feel free to ask questions regarding the theoretical framework.
fixedmundtlig.mod (1.3 KB)
nuvmundtlig.mod (1.7 KB)
The files run on my machine with Dynare 6.3 without any errors.
The “fixedmundtlig” file says “Failed to solve perfect foresight model”. What could be the cause of this? And how do I debug this. Btw thank you so much for answering!
Do I understand it correctly that you are trying to solve a fully static problem? Periods don’t have meaning, it’s just a sequence of static solutions?
What I ideally wanted to model is a new cohort for each period, but perhaps this requires dynamics in the model block? The theoretical framework implies the equations as steady state equations I believe, since consumption smoothing etc… Can I then interpret each period as a new cohort? The shocks correspond to longevity for cohorts born 1971 (period 1) and people born 2024 (period 53) (and all the cohorts inbetween). Please correct me if im wrong.
If you want I can show pictures of all the equations leading up to the ones I use? It is a simple two period OLG model with endogenous retirement decision, PAYG pension system (defined benefits), with exogenous return on assets (r) and labour supply as young and hence no capital dynamics (which is why I find it hard comparing to other posts in the forum)