Hello,
I am trying to solve the basic 'PBar' model (McCallum (1994)) with 3 equations. There is a one-period lagged expectation of one endogenous variable, and I am using the EXPECTATION(-1)(z) command for that. However, I get an error for the Blanchard Kahn conditions, and it says I have two eigenvalues greater than 1 for two forward looking variables.
Please can I get some direction as to what I should be doing?
Thank you very much.
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Lagged expectation
by anupmulay1 » Fri Feb 17, 2017 3:16 pm
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Re: Lagged expectation
by jpfeifer » Tue Feb 21, 2017 3:54 pm
Please provide more information on the reference. Which paper and which equations/model?
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