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Transition Matrix from dynare
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Transition Matrix from dynare
by bigbigben » Fri Mar 30, 2007 5:30 am
I 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.
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by MichelJuillard » Sun Apr 01, 2007 9:01 am
Chances are that there is a mistake in your linearization by hand
Best
Michel
Best
Michel
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