small open economy with working capital requirements for k

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small open economy with working capital requirements for k

Postby run_dmc » Thu Jun 29, 2017 3:17 pm

I'm currently trying to replicate a SMO model with WC requirements, but simplifying it by assuming that only capital is subject to these constraints. When I run my mod file, I get the following error:

Some element of Newton direction isn't finite. Jacobian maybe singular or there is a problem with initial values.

I've been trying to work around it w/o any success. Can anyone give me a hint on how to fix it?

Thanks!
Attachments
floating_default_baseline.mod
mod file
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Re: small open economy with working capital requirements for

Postby run_dmc » Thu Jun 29, 2017 5:54 pm

i here attach the full model in case it helps
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baseline_codes.rar
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Re: small open economy with working capital requirements for

Postby jpfeifer » Tue Jul 04, 2017 12:46 pm

It seems you are computing the steady state analytically, but for some reason, it does not solve the model. Have you checked if the equations with residuals are correct?
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Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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