Problems with Ramsey policy
Posted: Thu Jul 03, 2014 2:56 pm
Dear experts
I want to characterize equilibrium dynamics under Ramsey optimal monetary policy (in a 2-sector model). The model seems to work fine when I use stoch_simul, but the ramsey_policy routine crashes.
First it throws out warnings like this:
Then I get the following error:
Can someone please tell me what the problem is? mod- and steady state files are attached (note that one has to select either standard simulation or ramsey at the top of the mod-file).
I want to characterize equilibrium dynamics under Ramsey optimal monetary policy (in a 2-sector model). The model seems to work fine when I use stoch_simul, but the ramsey_policy routine crashes.
First it throws out warnings like this:
- Code: Select all
Warning: Rank deficient, rank = 1, tol = 2.379566e-15.
> In dyn_ramsey_static>dyn_ramsey_static_1 at 148
In dyn_ramsey_static>@(x)dyn_ramsey_static_1(x,M,options_,oo) at 39
In csolve at 60
In dyn_ramsey_static at 51
In evaluate_steady_state at 55
In resol at 108
In stoch_simul at 76
In ramsey_policy at 25
In oilpol at 654
In dynare at 120
Then I get the following error:
- Code: Select all
Error using print_info (line 63)
The steady state contains NaN or Inf
Error in stoch_simul (line 81)
print_info(info, options_.noprint);
Error in ramsey_policy (line 25)
info = stoch_simul(var_list);
Error in oilpol (line 654)
ramsey_policy(var_list_);
Error in dynare (line 120)
evalin('base',fname) ;
Can someone please tell me what the problem is? mod- and steady state files are attached (note that one has to select either standard simulation or ramsey at the top of the mod-file).