### Simple Asset pricing model, what is wrong here?

Posted:

**Wed Jul 24, 2013 6:31 pm**Hi I am a newbie to Dynare and just wanted to know what is wrong in the following lines of code. I get this error message:

Error using ones

NaN and Inf not allowed.

Error in dyntable (line 58)

hh = [hh char(32*ones(1,hlb)) deblank(headers(i,:)) ...

Error in disp_moments (line 97)

dyntable(title,headers,labels,autocorr,size(labels,2)+2,8,4);

Error in stoch_simul (line 154)

disp_moments(oo_.endo_simul,var_list);

Error in simpleplusplus (line 103)

info = stoch_simul(var_list_);

Error in dynare (line 120)

evalin('base',fname) ;

thanks for your help!!!!

var gc v gd;

varexo eps ;

parameters mu beta theta ;

mu = 0.02;

beta = 0.97;

theta = 2 ;

model;

v = beta*((1+gc(+1))^(-theta))*(1+gd(+1))*(1+v(+1));

gd = mu + eps;

gc = mu + eps;

end;

initval;

gc=.02;

gd=.02;

v=10;

end;

steady;

shocks;

var eps; stderr .2;

end;

steady;

check;

stoch_simul(periods=2000, irf=30, order=3);

Error using ones

NaN and Inf not allowed.

Error in dyntable (line 58)

hh = [hh char(32*ones(1,hlb)) deblank(headers(i,:)) ...

Error in disp_moments (line 97)

dyntable(title,headers,labels,autocorr,size(labels,2)+2,8,4);

Error in stoch_simul (line 154)

disp_moments(oo_.endo_simul,var_list);

Error in simpleplusplus (line 103)

info = stoch_simul(var_list_);

Error in dynare (line 120)

evalin('base',fname) ;

thanks for your help!!!!

var gc v gd;

varexo eps ;

parameters mu beta theta ;

mu = 0.02;

beta = 0.97;

theta = 2 ;

model;

v = beta*((1+gc(+1))^(-theta))*(1+gd(+1))*(1+v(+1));

gd = mu + eps;

gc = mu + eps;

end;

initval;

gc=.02;

gd=.02;

v=10;

end;

steady;

shocks;

var eps; stderr .2;

end;

steady;

check;

stoch_simul(periods=2000, irf=30, order=3);