The model doesn't determine the current variables uniquely

Dynare help (legacy posts)
1

hi,

I’m trying to run a small open economy model in which there are shocks to the trend of productivity, transitory shocks, world interest shocks and to the country risk (i’m trying to nest aguiar and gopinath model (2006) with neumeyer and perri model (2005) but i keep getting this error

Error using print_info (line 33)
The model doesn’t determine the current variables uniquely

Error in check (line 76)
print_info(info, options.noprint);

Error in taak (line 216)
oo_.dr.eigval = check(M_,options_,oo_);

Error in dynare (line 120)
evalin(‘base’,fname) ;

i’ve checked the equations several times and i just can’t figure out what is not working. i’ll really appreciate any help

Rosa
model.mod (2.27 KB)

2

Your equations are wrong. I guess

should by

z = rho_z*z(-1) + e_z ;
As you defined z to be the log already. Otherwise, z has steady state 0. The derivative with respect to z(-1) will be z(-1)^(0.01-1)=1/z(-1)^0.9. But z has steady state 0. Thus 1/z(-1)^0.9=1/0=Inf. This yields the error.

3

Thanks!!! i corrected the mistake but is still not working, any other ideas why this isn’t working?
Cheers

Rosa

4

This also applies to the other laws of motions. Have you also corrected them. If yes, post the new mod-file

5

The correction on the shocks solved that problem, however now i’m having troubles with the blanchard and Kahn condition.
I’ve found some mistakes on the model which i already corrected but i still can’t figure out which equation is wrong.

thanks so much for your help!

Rosa
model.mod (2.19 KB)

6

This most probably means that you still have a timing problem somewhere.