Error on deterministic simulation

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Error on deterministic simulation

Postby caue.dobbin » Thu Jul 17, 2014 9:05 pm

I am using dynare to solve a simple RBC model with recursive preferences. The mod file is attached. I believe there is nothing wrong with the model because when do a stochastic simulation, with stoch_simul, there are no errors. Nevertheless, we a try to do a deterministic simulation, with simul, a get the following message:

Simulation terminated with NaN or Inf in the residuals or endogenous variables. There is most likely something wrong with your model.
Error in simul (line 126)
sim1;
Error in ezBasic (line 188)
simul();
Error in dynare (line 182)
evalin('base',fname) ;

Using model_diagnostic, I get:

model_diagnostic: the Jacobian of the static model is singular
there is 1 colinear relationships between the variables and the equations
Colinear variables:
C
K
R
M
V
U
Colinear equations
1 2 3 4 6 7

What could be the problem?
Attachments
ezBasic.mod
(1.03 KiB) Downloaded 83 times
caue.dobbin
 
Posts: 1
Joined: Thu Jul 17, 2014 8:56 pm

Re: Error on deterministic simulation

Postby jpfeifer » Sun Jul 20, 2014 8:39 am

Check your FOCs. In your production function, there seems for example to be a alpha too much.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
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Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany


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