Hi there,
I tried to replicate the Krause and Lubik Code of the (Ir)- relevance of real wage rigidity in in the NKM with search frictions. When I run the code I have indeterminacy problems. Dynare's error message is:
??? Error using ==> print_info at 24
Blanchard Kahn conditions are not satisfied: indeterminacy
Error in ==> stoch_simul at 50
print_info(info);
Error in ==> KrauseLubik at 139
info=stoch_simul(var_list_);
Error in ==> dynare at 26
evalin('base',fname) ;
I attached the mod file. I don't know how to get further on. Please help me.
Thanks a lot.
Björn