Dynare forums

I am working on my Econ Honor Thesis. I am having a problem with these four variables: wphat, lphat, wdhat, and ldhat. (this is a slimmed down version of just the equations that I am having difficulty with, on there own they have no economic significance.)

I have attached the code below. I am uncertain how to move forward following the error codes I am getting. Any help would be greatly appreciated.

Thank you!

You need an initval-block. Without it, Dynare takes all intial values to be 0. But equation 4 is

Code: Select all

ldhat=(.64-1)/wdhat;                //%patient labor demand development


If wdhat is 0, you are dividing by 0.