hi,
I am new to Dynare and just tried to replicate the example in Chapter 3 of the User Guide.
For the mod file below Dynare stopped the process with the error message:
Starting Dynare (version 4.1.2).
Starting preprocessing of the model file …
ERROR: dynare.mod:3.1-6: syntax error, unexpected VAREXO
??? Error using ==> dynare at 126
DYNARE: preprocessing failed
I haven’t seen any other thread with the same error message, so I assume that I just made a stupid mistake. Still it would be nice, if you could point out, what I did wrong.
Thanks in advance
Mod file
var y c k i l y_l w r z;
varexo e;
parameters beta psi delta alpha rho sigma epsilon;
alpha = 0.33;
beta = 0.99;
delta = 0.023;
psi = 1.75;
rho = 0.95;
sigma = (0.007/(1-alpha));
epsilon = 10;
model;
1/c = beta*(1/c(+1)(1+r(+1)-delta));
psic/(1-l) = w;
c+i = y;
y=k(-1)^alpha*(exp(z)l)^(1-alpha);
w = (1-alpha)y/l((epsilon-1)/epsilon);
r = alphay/k(-1)*((epsilon-1)/epsilon);
i = k-(1-delta)k(-1);
y_l = y/l;
z = rhoz(-1)+e;
end;
initval;
k = 9;
c = 0.76;
l = 0.3;
w = 2.07;
r = 0.03;
z = 0;
e = 0;
end;
steady;
check;
shocks;
var e = sigma^2
end;
stoch_simul (periods=2100);