optmal ramsey policy: issue

[ilobayesian]

Hi,
I am trying to run ramsey_policy, but i get the following error:

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 4.3.3).
Starting preprocessing of the model file ...
Ramsey Problem: added 31 Multipliers.
Found 31 equation(s).
Found 68 FOC equation(s) for Ramsey Problem.
Evaluating expressions...done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives:
- order 1
- order 2
Computing static model derivatives:
- order 1
- order 2
Processing outputs ...done
Preprocessing completed.
Starting MATLAB/Octave computing.

Warning: Matrix is singular to working precision.
> In solve1 at 122
In dynare_solve at 130
In dyn_ramsey_static at 62
In evaluate_steady_state at 55
In resol at 108
In stoch_simul at 76
In ramsey_policy at 25
In ram at 640
In dynare at 120
??? Error using ==> lnsrch1 at 53
Some element of Newton direction isn't finite. Jacobian maybe singular or there is a problem
with initial values

Error in ==> solve1 at 129
[x,f,fvec,check]=lnsrch1(xold,fold,g,p,stpmax,func,j1,j2,varargin{:});

Error in ==> dynare_solve at 130
[x,info]=solve1(func,x,j1(r(i):r(i+1)-1),j2(r(i):r(i+1)-1),jacobian_flag,
bad_cond_flag, varargin{:});

Error in ==> dyn_ramsey_static at 62
[xx,info1] = dynare_solve(nl_func,xx,0);

Error in ==> evaluate_steady_state at 55
[ys,params] = dyn_ramsey_static(ys_init,M,options,oo);

Error in ==> resol at 108
[dr.ys,M.params,info] = evaluate_steady_state(oo.steady_state,M,options,oo,0);

Error in ==> stoch_simul at 76
[oo_.dr,info,M_,options_,oo_] = resol(0,M_,options_,oo_);

Error in ==> ramsey_policy at 25
info = stoch_simul(var_list);

Error in ==> ram at 640
ramsey_policy(var_list_);

Error in ==> dynare at 120
evalin('base',fname) ;

My model is in log deviation from steady state and my planner_objective is

ct-n*e^(1+omega)/(1+omega)*nt-n*e^(1+omega)*et

Can someone help?

[jpfeifer]

Not without the mod-file.

[ilobayesian]

Here it is

[ilobayesian]

Ok, I solved it. Basically the planner objective wasn't correctly specified. However, I have two questions:

1) Even if my model is log-linear, the planner objective should be in its non-linear original form, right?

2) I would like to estimate the model under the assumption that some endogenous are ramsey-optimal. How can I do that?

Thank you!