Steady State is Complex

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.


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

Thank you for the reference Dr. Pfeifer.