Hi dear team,

I’m featuring a problem with the steady state. the model doesn’t run.
Well, I have these values of these quotients at the steady state but I didn’t know how to write them:
PFss/Pss=0.53 and PIss/Pss=0.47

also, I have a problem with this equation, I could not write P at the steady state
#Pss^(1-mu)=omega*(PFss)^(1-mu)+(1-omega)*(PIss)^(1-mu);
ch3.mod (3.2 KB)

Bearing in mind that I’m working on this article for Ahmed et al.(2012)
!!! dsge model with informality in paistan 2012.pdf (410.3 KB)

Any help will be appreciated, Thank you.

You cannot have implicit definitions for model-local variables. You need to explicitly define `#Pss=....`

I define Pss as: P =(omega*(PF)^(1-mu)+(1-omega)*(PI)^(1-mu))^(1/(1-mu));
but the same problem persists! All equations are so related and I couldn’t understand from where to begin!

You need to solve this simultaneous equation system to obtain explicit definitions of the objects.

Yes I understand prof. Pfeifer. But the problem is how?
For example in the equations of formal and informal wages( WFss and WIss) they include the aggregate wage Wss. And Wss is composite of oWFss and WIss.
when I try to define WFss first Dynare tells That Wss is not defined.
And when I try to define Wss it tells me that WIss a’d WFss are not defined.

I hope that you get what I mean dear professsor!
I didn’t get a solution

Again, it’s a SIMULTANEOUS equation system. These can be solved, e.g. via substitution. You could also try solvers like Systems of Equations Solver: Wolfram|Alpha

1 Like

Indeed, the model does not run.

here is the new mod file if you could check it.

ch3.mod (3.2 KB)

``````INFL=beta*INFL(+1)+ (1-theta)*((1-beta*theta)/theta)*(MCF);
``````

to be properly linearized. After that, you need to check for timing errors.

I checked them and I got the results and graphs. Besides I’ve got this message error.

Note: 1 warning(s) encountered in the preprocessor
Note: warning(s) encountered in MATLAB/Octave code

Thanks for your kind responses. Hats off to you dear professor.

As the message at the top says:

``````WARNING: In stoch_simul: YI found more than once in symbol list. Removing all but first occurrence.
``````

in your variable list for `stoch_simul`, `YI` appears twice.