Search and matching model, BK condition
Posted: Fri Jan 30, 2015 4:56 pmHi everybody,
I have some problems in running my search and matching model.
Dynare correctly computes the steady state but then tells me that I have one eigenvalue greater than one less than my looking forward variables.
I can't see why this problem arises, as parameters are similar than in the literature and I doublechecked the timing of the model.
I agree with Dynare about the number of looking forward variables but I don't know how to fix the problem of eigenvalues.
If anyone can have a look at the model would be of much help.
Thank you!
I have some problems in running my search and matching model.
Dynare correctly computes the steady state but then tells me that I have one eigenvalue greater than one less than my looking forward variables.
I can't see why this problem arises, as parameters are similar than in the literature and I doublechecked the timing of the model.
I agree with Dynare about the number of looking forward variables but I don't know how to fix the problem of eigenvalues.
If anyone can have a look at the model would be of much help.
Thank you!