Hello everyone,I use the dsge model to study the impact of emission reduction policies on environmental quality, but the model suggests“The Jacobian of the static model contains Inf or NaN. The problem arises from:
Derivative of Equation 29 with respect to Variable pai (initial value of pai: 0)
Derivative of Equation 29 with respect to Variable r (initial value of r: 0) ”.
Do you have any suggestion on how to tackle this problem?
Thank you very much for your help,
Have a nice day!
model8.mod (3.3 KB)
When I run your code in Dynare 5.0, the steady state is not found.
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Thank you very much.