Hi everyone
I am a new user and I am running RBC model. I encounter the Blanchard Kahn error while running this model, and even though I have checked the timing of model , the model still does not work, what do you think is the problem?
(Thank you in advance for your guidance)
The codes of my program are as follows
var Y C I K w N R A;
varexo e;
parameters delta alpha theta gamma beta rho_a;
delta = 0.08000000000;
alpha = 0.6234693878;
theta = 1.131841142;
gamma= 2.170000000;
beta = 0.9800000000;
rho_a=0.95;
model
Y=C+I;
K(+1)=((1-delta))*K+Y-C;
w=(alpha)*(A^alpha)*((K/N)^(1-alpha));
R=(1-alpha)*(((A*N)/K)^(alpha))+1-delta;
Y=K^(1-alpha)*((A*N)^(alpha));
w/C=theta*((1-N)^(-gamma));
1/C=(beta)*(R(+1)/C(+1));
log(A)=(rho_a)*log(A(-1))+e;
end;
Initval;
Y=0.7331409667;
C=0.7000000000*0.7331409667;
I=0.3000000000*0.7331409667;
K=3.750000000*0.7331409667;
N=0.3300000000;
w=1.889301175*0.7331409667;
R=1.020408163;
e = 0;
A=1;
end;
stable
model_diagnostics;
check;
shocks;
var e; stderr 0.1;
end;
stoch_simul (periods=1600, order=1, IRF=60);