Dynare forums

Hello, I would be thankful if someone could explain what's wrong with my code.

here it is:

Code: Select all

var y pi i;
varexo d m s;
sigma=1;
beta=0.99;
lambda=0.1;
phi_pi=1.5;
phi_y=0.2;

model;
y = y(+1)-1/sigma*(i-pi(+1)-log(beta))+d;
pi = beta*pi(+1)+lambda*(y+m);
i = log(beta)+phi_pi*pi+phi_y*y+s;
end;

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what I get out is quite strange:

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>> dynare 1model.mod

Configuring Dynare ...
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Local state space iteration (second order).
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.
[mex] Quasi Monte-Carlo sequence (Sobol).
[mex] Markov Switching SBVAR.

Starting Dynare (version 4.4.1).
Starting preprocessing of the model file ...
ERROR: 1model.mod: line 10, cols 13-17: Unknown symbol: sigma

Error using dynare (line 168)
DYNARE: preprocessing failed

I really don't understand what's wrong. Any help is appreciated.

The parameters declaration part is missing in your code. It should be declared after the endogenous variables.