Hello People, while running I am getting error:
Substitution of endo lags >= 2: added 1 auxiliary variables and equations.
ERROR: There are 76 equations but 74 endogenous variables!
After having a look I can’t figure out which equation is redundant.
Please help.
MSP.mod (10.0 KB)
MSP_steadystate.m (6.1 KB)
I don’t have a single aggregate market clearing equation. Instead I have multiple market clearing equations (each for 3 production sectors and others for capital and govt. bond), which I think is reponsible for the problem: number of equations is more than the number of variables?
Please guide!!
That is hard to tell. Your model is simply too big. I can only recommend starting with a smaller version.