Dynare Code Not Running

[felix1989]

Dear all,

I'm new to Dynare, and I have to write my Bachelor's thesis on the paper "A New Keynesian Perspective on the Great Recession" from 2010 by Peter N. Ireland. Since, I'd never worked with Dynare before, I'm not able to find the mistake that I obviously made writing the model. It's a quite simple model, so maybe can have a quick look at it, and identify the errors.
This is what Octave tells me, when I try to run the model:

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).
error: caught execution error in library function
error: called from:
error: /Applications/Dynare/4.3.2/matlab/dynare_config.m at line 261, column 1
error: /Applications/Dynare/4.3.2/matlab/dynare.m at line 68, column 12

You can find the mod file attached to this message. I hope someone can help me!

Thanks a lot

Felix

[jpfeifer]

This is not a problem with your mod-file, but with your Dynare installation. Please try installing 4.4.2.

[felix1989]

This is what I had before, but then there was an error message saying that this Dynare version might not be compatible with my Octave version.

[felix1989]

Now that I tried o run it with the 4.4.2 version, there are those error messages:
octave-3.4.0:3> dynare Ireland.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.
[no] k-order perturbation solver.
[mex] k-order solution simulation.
[no] Quasi Monte-Carlo sequence (Sobol).
error: caught execution error in library function
error: called from:
error: /Applications/Dynare/4.4.2/matlab/dynare_config.m at line 282, column 1
error: /Applications/Dynare/4.4.2/matlab/dynare.m at line 48, column 12

Do you know what that means?

[jpfeifer]

Which Octave version are you using? You could also try the most recent snapshot/unstable version which is built against Octave 3.8.1

[felix1989]

I use Octave 3.4.0. The most recent one doesn't run on my Mac. But I'll check if 3.6 does.

[felix1989]

I slightly changed my mod file. This is what it tells me now:
EIGENVALUES:
Modulus Real Imaginary

0 0 0
0 -0 0
0.3498 0.3498 0
0.5943 0.5943 0
0.9797 0.9797 0
1.001 0.1943 0.9816
1.001 0.1943 -0.9816
1.396 1.323 0.4436
1.396 1.323 -0.4436
2.476 2.476 0


There are 5 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)

The rank conditions ISN'T verified!

error: Blanchard Kahn conditions are not satisfied: no stable equilibrium
error: called from:
error: /Applications/Dynare/4.2.2/matlab/print_info.m at line 39, column 9
error: /Applications/Dynare/4.2.2/matlab/stoch_simul.m at line 71, column 5
error: /Users/felix-noeldner_bln/Ireland.m at line 190, column 6
error: /Applications/Dynare/4.2.2/matlab/dynare.m at line 120, column 1


Any ideas on that??? I mean, this is what the model looks like. There are indeed 4 forward-looking variables. How can I get this fixed with Dynare?

Thx

[jpfeifer]

This is an economic problem, not a Dynare problem. You need to fix your model. Usually it is a timing error. Search the forum.