Steady State is Complex

Steady state
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Integration_level.mod (3.2 KB) Integration.mod (4.3 KB)

In line with my previous posts, I’ve adapted my framework based on Jermann and Quadrini (2012) to account for a financial integration case. Originally I created my mod file at levels, I did receive a warning that the matrix is singular to working precision. Currently I’m unsure how to address my steady state being complex when I’m transforming my model to reflect % deviations from steady state for IRFs. I couldn’t tell if I made a coding error or it’s a more fundamental economic problem.

Thanks.

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Don’t do a full exp()-substitution. Append auxiliary variables. See Question about understanding irfs in dynare

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Thank you for the reference Dr. Pfeifer.