Transition Matrix from dynare
Posted: Fri Mar 30, 2007 5:30 amI just want to compare the solution from different methods. I have the orginal model with original nonlinear equations in dynare and it looks good. Then I tried to use AIM algorithm to solve the linearized version to compare the result, it turns out to be no stable equilibrium. After that I try to solve the linearized model but get indeterminacy. It really drives me nuts.