Dynare forums

Hi,

I also have the similar question. I have a DSGE model with the banking sector. When I run the Ramsey policy in my nonlinear dynare code, I obtain the following message:

==========

Starting Dynare ...
Starting preprocessing of the model file ...
38 equation(s) found
Processing derivation ...
Processing Order 1... done
Processing Order 2... done
1 equation(s) found
Processing derivation ...
Processing Order 1... done
Processing Order 2... done
Processing outputs ...
Preprocessing completed.
Starting Matlab computing ...

??? Error using ==> feval
Undefined function or method
'non_2_Calvo_H_Simple_Policy_normalized_test_3_Ramsey_objective_'
for input arguments of type 'double'.

==============

The problem seems to come from the failure to generate the steady state values for each iteration. I found the 'non_2_Calvo_H_Simple_Policy_normalized_test_3_Ramsey_objective_static.m' stopped after calculating part of the Hessian matrix.

If this is a problem in solving the steady state, may I know whether using the analytical solution for the steady state would be the answer? (I do have the analytical solution for the steady state)

If not, can anybody tell me what the problem and possible solution would be?
[quote][/quote]
Thank for any help in advance.

Best,
Nymph

Is this the full error message? Because it says it cannot find "non_2_Calvo_H_Simple_Policy_normalized_test_3_Ramsey_objective_", which is a file that does not exist. Have you tried using a shorter filename for your mod-file? It seems that the name got truncated, which might be the reason for the problem.

Hi jpfeifer,

Thank you so much for the prompt reply. After shortening the file name, now it passed the error message as I posted, but tells me the Blanchard and Kahn condition does not hold. However, the initial value that I use for the original file can run and generate the IRFs. I removed the policy equation for running Ramsey policy, leaving 40 equations and 41 endogenous variables, could it lead to the problem?

Moreover, I have not yet used the analytical solution of steady state for running the Ramsey problem since the previous discussions seemed not to have the certain answer. If this is the only right way to do it, I would modify accordingly.

Thank you!

Best,
Nymph