Problem with computing Eigenvalues
Posted: Wed Mar 30, 2011 1:19 pmHi, guys:
I have a two-sector model similar to Christiano and Fisher (1998, investment shock and asset price). The RBC version of the model works just fine. If I add nominal rigidities in both sectors, i.e, sticky prices for both consumption and investment, dynare has trouble to compute the eigenvalues. I cannot figure out why it is the case.
Attached are the codes. simple_twosector_detrend is for the RBC and nk_twosector_detrend is for the model with nominal rigidities.
Thanks for your help.
I have a two-sector model similar to Christiano and Fisher (1998, investment shock and asset price). The RBC version of the model works just fine. If I add nominal rigidities in both sectors, i.e, sticky prices for both consumption and investment, dynare has trouble to compute the eigenvalues. I cannot figure out why it is the case.
Attached are the codes. simple_twosector_detrend is for the RBC and nk_twosector_detrend is for the model with nominal rigidities.
Thanks for your help.