Dynare forums

Posted: **Mon Aug 07, 2006 5:03 pm**

Hello.

I'm wondering if we can use the dynare program to solve a model with indeterminacy such as Farmer Guo(1994).

Do we have to change some codes in Dynare?

Thank you.

Posted: **Thu Aug 10, 2006 1:02 pm**

I don't have Farmer Guo (1994) at hand can you send it to me so I can answer?

Best

Michel

Posted: **Thu Aug 10, 2006 5:10 pm**

Here are two original papers on the model with indeterminacy.

1. Farmer and Guo(1994 JET)
2. Yi WEN (1998, JET)

In this model, two eigen values are less than one, so they have dynamics of 'SINK' rather than 'Saddle Path'.

Thank you.

Posted: **Fri Aug 11, 2006 1:29 pm**

Thanks, I will look at it and get back to you

Best

Michel

Dynare forums

dynare for a Model with Indeteminacy?

dynare for a Model with Indeteminacy?

Two original Papers on indeterminacy