Hi,
I am trying to write a simple model using Dynare. The model is a two sector, closed economy model with a Kinked Demand curve. See attached.
After running the model, I obtain theoretical moments of NaN for several variables. Upon checking I find that there is one eigenvalue of one. Thus, my model has a unit root.
My problem is that I cannot find the unit root. Perhaps, I have been staring at this too long. I would appreciate any help with the diagnostics of this model and any tips for resolving it.
Cheers.
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Theoretical Moments - NaN
by Duke » Sun Apr 06, 2014 6:16 am
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Kinked Demand.mod- (2.25 KiB) Downloaded 72 times
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Re: Theoretical Moments - NaN
by jpfeifer » Wed Apr 09, 2014 8:37 am
Please provide a running version. There are problems related to the KAPPAs
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