dsge_risks.mod (4.94 KB)

Hi guys, I am trying to replicate the paper “Risk Matters: The Real Effects of Volatility Shocks” by Fernandez-Villaverde et al. but I am having problems calculation the steady state. I get following message: Error using

Starting Dynare (version 4.4.2).

Starting preprocessing of the model file …

Found 14 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1
- order 2
- order 3

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

print_info (line 72)

The steadystate file did not compute the steady state

Error in stoch_simul (line 98)

print_info(info, options_.noprint, options_);

Error in dsge_risks (line 267)

info = stoch_simul(var_list_);

Error in dynare (line 180)

evalin(‘base’,fname) ;

I am using the steady state model block, but it’s not working.

The original paper can be found here

economics.sas.upenn.edu/~jesusfv/risk.pdf

the model is in page 21

thanks everyone

risk.pdf (994 KB)