Two-sector modeling

Dear all,

i have a deterministic Ramsey model with two agents. Dynare gives singular matrix error when i simulate the model. I guess it is resulted from the model of two agents but i donot know how to solve the problem.

Second problem is that it gives steady-state values but they do not match with what i found using another program.

i am sending my mod file, maybe there is someone working on these boring things like me in the middle of the summer… :slight_smile:

My best,

twoagentclosek.mod (1.12 KB)

Having a quick look at your model it appears to me
there is no scaling eq in it:
I could multiply say by 2 all the appropriate variables (prices remaining the same) and all the eqs would still hold.

So the ‘size’ of the economy is indetermined.

thank you very much hkucsera.

I will look at my equations again and reconsider what you said.

thanks again…