Small open economy

[macroeco]

Hi,

I'm just a new user of dynare but I have a problem with the computation of the steady state I think. Actually, when I want to run my program, it crashes! The message that appears is as follows:

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).
[mex] Markov Switching SBVAR.

Starting Dynare (version 4.4.3).
Starting preprocessing of the model file ...
Substitution of endo leads >= 2: added 1 auxiliary variables and equations.
ERROR: There are 14 equations but 15 endogenous variables!

error: DYNARE: preprocessing failed
error: called from:
error: c:\dynare\4.4.3\matlab\dynare.m at line 174, column 5

I have 14 endogenous variables, I don't understand why it considers there are 15.
Could you help me, please?

Thanks in advance!

[jpfeifer]

We will look into this issue and keep you posted.

[jpfeifer]

The problem is that you define 14 endogenous variables, but you have only 13 equations in your model block. The message is thus correct. As the preprocessor says,

added 1 auxiliary variables and equations.

There is one additional equation added due to your having k(2) in the model (Note that this suggests that you most probably have a timing error; from looking at it capital should be predetermined; you could use the predetermined_variables command). After adding one auxiliary variable with one defining equation, you are left with 15 variables, but still only 14 equations.

[macroeco]

Thanks a lot !

So I have been trying to fix problems I've got with Dynare and I think that the previous problem with the number of endogenous variables is ok.
However, a new one appears now : when I run the program, this message appears :

Starting Dynare (version 4.4.3).
Starting preprocessing of the model file ...
Substitution of endo leads >= 2: added 1 auxiliary variables and equations.
Found 16 equation(s).
Evaluating expressions...done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives:
- order 1
- order 2
Processing outputs ...done
Preprocessing completed.
Starting MATLAB/Octave computing.

parse error near line 225 of file c:\dynare\work\essai20mars.m

syntax error

>>> end;
^

error: called from:
error: c:\dynare\4.4.3\matlab\dynare.m at line 180, column 1

I checked in the .m file, line 225, and indeed there is a "end" that appears. I had a look at some examples of files on the website and even if I know that this "end" shouldn't be there, I'm still try to understand why it appears and what I have done that is wrong. Could you enlighten me once more, please?

Thanks in advance!

[jpfeifer]

In your mod-file there is a lonely

Code: Select all

end;

at the end of the parameter definitions before the model-block. Delete it.

[macroeco]

Thanks ! But now I've got a problem with two residuals. I checked the parameters and I don't understand where the problem could be from

Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0.00025434
Equation number 6 : 0
Equation number 7 : -0.038955
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : 0


error: The steadystate file did not compute the steady state
error: called from:
error: c:\dynare\4.4.3\matlab\print_info.m at line 72, column 9


Very sorry for bothering you...

[jpfeifer]

That means either those two equations are wrong or your steady state computation in the steady_state file is wrong. Check them.

[macroeco]

If I'm not mistaken, we are supposed to have as many eigenvalues larger than one as we have forward looking variables. I have 5 forward looking variables (both of them are +1), I have 5 eigenvalues greater than one but this message appears :

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).
[mex] Markov Switching SBVAR.

Starting Dynare (version 4.4.3).
Starting preprocessing of the model file ...
Substitution of endo leads >= 2: added 1 auxiliary variables and equations.
Found 16 equation(s).
Evaluating expressions...done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives:
- order 1
- order 2
Processing outputs ...done
Preprocessing completed.
Starting MATLAB/Octave computing.


STEADY-STATE RESULTS:

c 0.326759
r_f 0.01375
w 1.71365
v 0.0578358
l 0.200324
k 3.19604
i 0.079901
y 0.528131
a 1
b 0.85125
d 0.301034
g 0.105626
tb 0.0158439
nd 0
h 1.15228




Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : 0



EIGENVALUES:
Modulus Real Imaginary

4.613e-017 -4.613e-017 0
1.313e-015 1.313e-015 0
0.904 0.904 0
0.9163 0.9163 0
0.9538 0.9538 0
0.9972 0.9972 0
1.014 1.014 0
1.02 1.02 0
4.695e+017 4.695e+017 0
2.101e+019 2.101e+019 0
Inf -Inf 0


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

The rank condition ISN'T verified!
error: Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure
error: called from:
error: c:\dynare\4.4.3\matlab\print_info.m at line 48, column 9
error: c:\dynare\4.4.3\matlab\stoch_simul.m at line 98, column 5
error: c:\dynare\work\incomplete_markets_new.m at line 237, column 6
error: c:\dynare\4.4.3\matlab\dynare.m at line 180, column 1

Where could the problem come from ?

PS : Happy Easter to all of you !

[jpfeifer]

See the bottom of http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=6635