Transition path

Hi Michel
I am trying to solve for the transition path from one steady state to another for a simple Ramsey taxation problem. I am getting an error for the simulation part of the problem. I have solved other versions of my problem using Dynare & they work. The error message I get is:

??? In an assignment A(I) = B, the number of elements in B and
I must be the same.

Error in ==> c:\dynare_v3\matlab\bksupk.m
On line 26 ==> d1(ir) = c(:,jcf) - c(:,1:size(irf1,1))*d1(irf1) ;

Error in ==> c:\dynare_v3\matlab\simk.m
On line 283 ==> c = bksupk(ny,fid,ncc,icc1) ;

Error in ==> c:\dynare_v3\matlab\simul.m
On line 39 ==> simk ;

Error in ==> C:\6_3\Govt int mkt\Ramseyprob.m
On line 136 ==> simul(dr_);

Error in ==> c:\dynare_v3\matlab\dynare.m
On line 26 ==> evalin(‘base’,fname) ;

Also when I use the command check after finding the steady state I get an error message.

I have sent the mod file for the problem to your email address. Any help will be highly appreciated.


Dear Shiva,

in Dynare, you must use stock at the end of the period and not stocks as the beinning of the period as you do for the stock of capital. Typically, production is done with k(-1) and not k.

For deterministic simulations, in Dynare, you can’t use a model without lagged variables.

In addition, I have doubts about the timing in your Euler equation. I would expect labor to appear in t+1.

Kind regards


Thanks Michel.

The model I sent you is a very simple one & the capital stock is assumed to be fixed. As a result production is a function of the fixed capital stock k.

I did not know that for deterministic simulations, in Dynare, you can’t use a model without lagged variables - thanks for the information. I have to try & see how to deal with this.

I am trying to use Dynare as part of a shooting algorithm (the mod file is just for a part of the whole problem) but the Dynare part by tself is not working. I have to keep your comments in mind & will try to solve this problem.

Thanks a lot for your help.