Dynare forums

Hi to everyone,
I am trying to run sum simulations of a log-linearized model on dynare but unfortunately I always get the same error message: "error: The Jacobian matrix evaluated at the steady state contains elements that are not real or are infinite".
I attach a copy of the mod-file.
Is anyone able to give me the reason?

Given your parametrization, your second expression

Code: Select all

psi=(((1-gamma)*gamma*(beta)^(2))/(gamma*(gamma*beta*SIGMABAR)^(2)-(1-SIGMABAR)^(2)))^(1/2)

evaluates to a complex number.