Dynare forums

Hi, I am trying to solve international RBC with investment adjustment costs and dynare reports the following

STEADY-STATE RESULTS:

k1 2.89526
k2 2.89526
c1 3.84806
c2 3.84806
b1 -1.6
b2 7.8727
a1 0
a2 0
??? Error using ==> print_info at 49
MJDGGES returns the following error code14

Error in ==> stoch_simul at 44
print_info(info);

Error in ==> twocountry1 at 135
info = stoch_simul(var_list_);

Please could you help me what does this mean and what to da with that?

Thank you in advance,
Kateryna

Error in ==> dynare at 102
evalin('base',fname) ;

Hi Kateryna, We cannot help if you do not post your mod file... Did you read this post?

Best, Stéphane.

Hi, thank you for the reply,
here is the file,
Kateryna

As in this post, you may have a scaling problem in the Jacobian matrix of your model evaluated at the deterministic steady state. The smaller value in this jacobian matrix is of order 1e-5 while the bigger is of order 1e3. In this case dgges in not able to compute the generalized schur decomposition. I think that the problem is related to the steady state value of b2. This value is too big compared to the other steady state values. I don't know the model, but shouldn't you have a constraint between exp(b1) and exp(b2) ?

Best,
Stéphane.