Dear all,
I would like to conduct a policy simulation under the assumption that the nominal interest rate stays at zero for some extended periods. For this exercise, I rely on the deterministic solver, simul. However, I obtain the following error messages:
------------------------------------------------------------------------------------------------------
Error using horzcat
Dimensions of matrices being concatenated are not consistent.
Error in simul (line 58)
mess = ['SIMUL: error in model specification : variable '
M_.endo_names(find(M_.lead_lag_incidence(M_.maximum_lag+1,:)==0),:)];
Error in basicmodel_kh4_debtrelief_ZLB (line 1039)
simul();
Error in dynare (line 180)
evalin('base',fname) ;
------------------------------------------------------------------------------------------------------
Interestingly, if I use the stochastic solver, stoch_simul, I can solve the model and get dynamic responses to a shock considered.
It would be great if someone gives me an idear to overcome these error messages.
I attach the files regarding to my model.
Thank you in advance.
Jinhyuk