Blanchard-Kahn Indeterminacy
Posted: Sat Apr 05, 2014 11:25 amHi.
I'm currently a postgraduate student who has just begun to use dynare.
Currently, I'm trying to simulate a very simplified version of the Iaciovello 2005 housing model with collateral constraints.
So far, dynare has been able to calculate my steady state values but following that, I get an error message about 'indeterminacy'.
I was just wondering if anyone could explain how I could resolve this issue as I have been trying for 3 weeks now to no avail.
I'm currently a postgraduate student who has just begun to use dynare.
Currently, I'm trying to simulate a very simplified version of the Iaciovello 2005 housing model with collateral constraints.
So far, dynare has been able to calculate my steady state values but following that, I get an error message about 'indeterminacy'.
I was just wondering if anyone could explain how I could resolve this issue as I have been trying for 3 weeks now to no avail.