Syntax error, unexpected VAREXO

Stochastic simulations
1

Hi guys,

I’m writing a model and whenever I try to compile it, it send me back a pre-prod error syntax error, unexpected VAREXO.

Here’s what my varexo and my shock bloc.

var c, cstar, d, dstar, ktrade, kNT, y, ystar, ktradestar, kstarNT, itrade, iNT, itradestar, iNTstar, x, xstar, shockT, shockNT, shockTstar, shockNTstar, z, zstar;

varexo depsilonT, depsilonNT, depsilonstarT, depsilonstarNT;

shocks;

varexo epsilonT; stderr 0.009;
varexo epsilonNT; stderr 0.009;
varexo epsilonstarT; stderr 0.009;
varexo epsilonstarNT; stderr 0.009;
steady; check;

Can someone help me, I’ve been stuck here for a while

2

It should be

shocks;
var epsilonT; stderr 0.009;
var epsilonNT; stderr 0.009;
var epsilonstarT; stderr 0.009;
var epsilonstarNT; stderr 0.009;
end;
steady; 
check;
3

Thank you for the fix, but it still doesn’t recognizes the varexo part. Would you need to see the part for the AR process ?

Here’s the entire code, maybe its something much more basic

var c, cstar, d, dstar, ktrade, kNT, y, ystar, ktradestar, kstarNT, itrade, iNT, itradestar, iNTstar, x, xstar, shockT, shockNT, shockTstar, shockNTstar, z, zstar;

varexo depsilonT, depsilonNT, depsilonstarT, depsilonstarNT;

Parameters 

dbeta = 0.9				% Time discount factor
dgamma = 3.3			% Inverse of intertemporal elasticity of substitution (1/gamma)
dphi = 2.5				% Share of consumption deflator where 1/phi = Elasticity of substitution between traded & Non-Traded
dtheta = 0.4            % Share of Capital
domega = 0.5	        % weigth of each economy
ddelta = 0.1			% Capital Depreciation Rate
yhat = 0.3				% growth rate of the economy
omegaT = 0.23			% Autocorrelation of ShockT
omegaNT = 0.32          % Autocorrelation of ShockNT
omegastar = 0.23        % Autocorrelation of ShockTstar
omegastarNT = 0.32      % Autocorrelation of ShockNTstar


Model 


c + cstar = x + xstar
d = z
dstar = zstar
x = shockT*(ktrade^dtheta)
xstar = shockTstar*(ktradestar^dtheta)
ktrade = (1-ddelta)*(ktrade(-1)) + itrade
ktradestar = (1-ddelta)*(ktradestar(-1)) + itradestar
kNT = (1-ddelta)*(kNT(-1)) + iNT
kstarNT = (1-ddelta)*(kstarNT(-1)) + iNTstar
z = shockNT*(kNT^dtheta)
zstar = shockNTstar*(kstarNT^dtheta)
y = (c + d) + itrade
ystar = (cstar + dstar) + itradestar


% Production constraints

shockNT * ((kNT)^dtheta) = d + iNT
shockNTstar * ((kstarNT)^dtheta) = dstar + iNTstar
(shockT * ((ktrade)^dtheta)) + (shockTstar * ((ktradestar)^dtheta)) = c + cstar + itrade + itradestar

% Social planner constraint

omega*((c^(dphi)) / [((c^(1-dphi)+(d^(1-dphi)))((dgamma+dphi)/(1-dphi)))]) = (1 - domega)*((c(+1)^(dphi)) / [((c(+1)^(1-dphi)+(d(+1)^(1-dphi)))((dgamma+dphi)/(1-dphi)))])


% Intertemporal tradeoff (Home and Foreign)

((c^(dphi)) / [((c^(1-dphi)+(d^(1-dphi)))((dgamma+dphi)/(1-dphi)))]) = dbeta*[shockT(1)*shockT/(ktrade(-1)^(dtheta))+(1-ddelta)]*
((c(+1)^(dphi)) / [((c(+1)^(1-dphi)+(d(+1)^(1-dphi)))((dgamma+dphi)/(1-dphi)))])

((cstar^(dphi)) / [((cstar^(1-dphi)+(dstar^(1-dphi)))((dgamma+dphi)/(1-dphi)))]) = dbeta*[shockTstar(1)*shockTstar/((ktradestar(-1))^(dtheta))+(1-ddelta)]*
((cstar(+1)^(dphi)) / [((cstar(+1)^(1-dphi)+(dstar(+1)^(1-dphi)))((dgamma+dphi)/(1-dphi)))])



% Shocks 

shockT(1) = omegaT*shockT + depsilonT
shockNT(1) = omegaNT*shockNT + depsilonNT
shockTstar(1) = omegastar*shockTstar + depsilonstarT
shockNTstar(1) = omegastarNT*shockNTstar + depsilonstarNT


end;


initval;

c =
cstar =
d =
dstar =
ktrade =
kNT =
ktradestar = 
kstarNT = 
itrade = 
iNT = 
x = 
xstar = 
z = 
zstar = 
shockT = 
shockNT = 
shockTstar = 
shockNTstar = 




shocks;

varexo depsilonT; stderr 0.009;
varexo depsilonNT; stderr 0.009;
varexo depsilonstarT; stderr 0.009;
varexo depsilonstarNT; stderr 0.009;
end;
steady; check;

stoch_simul(order=1);
4

I would need to see the full file. Here, the semicolons are missing after many lines as is the parameter declaration.