Dear all,
Hello, I try to replicate Corsetti, Dedola, and Leduc (2008)'s work about the transmission mechanism of the productivity shocks.
I already derive the first order conditions and solve the steady state problem. And I believe they are correct.
However, when I run Dynare, it keeps showing that some initial values are set to be zero because their exponents are smaller than 1.
Therefore, the Jacobian contains Inf or NaN.
I don't understand why it can't run…
Can anyone help? What should I do?
Thanks a lot.
Susie