The Jacobian of the dynamic model contains imaginary parts

Stochastic simulations
1

Dear all,

I’m coding the RBC model from Eric Sims classes in Matlab. But I have following errors from dynare. Could you help me to solve this problem? RBC_draft.mod (726 Bytes)

thanks

STEADY-STATE RESULTS:

y 0
lab 196608
c 235930
w 0
r 0.010101
I -235930
k -235930
a 0
Error using print_info (line 51)
The Jacobian matrix evaluated at the steady state contains elements that are not real or are infinite

Error in stoch_simul (line 100)
print_info(info, options_.noprint, options_);

Error in RBC_draft (line 169)
info = stoch_simul(var_list_);

Error in dynare (line 235)
evalin(‘base’,fname) ;

2

Your equations are wrong. For example, it must be exp(a) in the production function as a is mean 0.

3

Thank you very much!