DSGE simulate Problem of NK model with financial accelerator

[yshguo]

dear all

When I simulate DSGE MODEL of NK model with financial accelerator, I get the following error:

>> dynare chsimu2

STEADY-STATE RESULTS:

a 3.13326e-025
b -1.29247e-026
c 0
e 0
f 2.06795e-025
h 1.24077e-024
i -2.48154e-024
k -5.37667e-024
lamd 0
m -6.46235e-027
mu 1.03398e-025
n -7.44463e-024
pi 1.03398e-025
q 1.34417e-024
r 1.03398e-025
w 4.1359e-025
x 0
xi -3.0373e-025
y -6.20385e-025
z 4.54949e-024
??? Error using ==> print_info at 24
Blanchard Kahn conditions are not satisfied: indeterminacy

Error in ==> stoch_simul at 50
print_info(info);

Error in ==> chsimu2 at 167
info=stoch_simul(var_list_);

Error in ==> dynare at 36
evalin('base',fname) ;

Does anyone enountered this before. I am using dynare_v3.

Thanks

yushguo

[iacoviel]

You should check the timing of your equations. k(t) is a state variable, you should shift it backwards. That is, everytime there is k(t+1), you should have k(t) in your code, and so on for k(t).

[yshguo]

dear iacoviel

many thanks for your suggestion. I have solved the problem.

Kind regards,

yshguo

[lipetty]

hi，yshguo,could u so kind post the whole mod file for me to study?thank u advance.

[peter487]

Version working under Dynare 4.3