Residuals of the static equations: NaN

[Aldo]

Dear all,
I am getting two NaN when I run my .mod.

Equation number 1 : NaN
Equation number 2 : NaN
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
...

Please could you help me?

Thanks

Aldo

[jpfeifer]

You have

Code: Select all

sig_c=0

so that in

Code: Select all

 WELFARESS = (XSS^(1-sig_c)/(1-sig_c) - LC_BAR*LCSS^(1+sig_l_C)/(1+sig_l_C)- LD_BAR*(1-LCSS)^(1+sig_l_D)/(1+sig_l_D))/(1-betta);


you are dividing by 0. Put differently, the log utility case is not really nested in your code.

[Aldo]

Thanks a lot dear jpfeifer.

Greetings

Aldo