When I run my code I got following error even it calculates steady state. When I apply model_diagnostic. It doesnt give any results. My model file is at the attachment. If you help me I will be very happy.
Error using print_info
The generalized Schur (QZ) decomposition failed. For more information, see the documentation for Lapack function dgges:
Model.rar (27.1 KB)
model_diagnostics tells you
MODEL_DIAGNOSTICS: The following endogenous variables aren't present at the current period in the model:
Dear professor thank you for your answer . Before in my model the capital accumulation equation was as below;
KP= IP(-1) + (1-delta_P)*KP(-1) - 0.5*Theta_K*((KP-KP(-1))/KP(-1))^2*KP(-1);
After your explanation regarding IP, I change above equation as
KP= IP + (1-delta_P)*KP(-1) - 0.5*Theta_K*((KP-KP(-1))/KP(-1))^2*KP(-1);
However I got same error “The generalized Schur (QZ) decomposition failed.”
What can the problem be ?
If you help me I will be very glad.
Often, it’s a timing error. But these things are hard to debug. You may want to start from a simpler version of the model.