Error. division by

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Error. division by

Postby Nicolas67 » Fri Sep 05, 2014 10:03 am

Good morning everybody,
I have a problem with my file .mod.
I had wrote a monetary union model with two open countries, with representative household, final goods producers, capital producers, financial intermediary, central bank, national government and federal authority. I have a productivity shock and my aim is to prove the efficiency of federal fiscal transfer to stabilize the economy conjoncturel. I had computed hand values of steady state and the model coherence is correct. But, an error message say that "dividion by zero". I audited each equation one by one and neither is divided by zero.
Do you know this problem? Someone may help me to resolve this problem.
Here is my file:
Attachments
modeltransfert.mod
(12.71 KiB) Downloaded 87 times
Nicolas67
 
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Re: Error. division by

Postby jpfeifer » Fri Sep 05, 2014 10:50 am

This seems to be a bug in Dynare's preprocessor. We will keep you posted.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Re: Error. division by

Postby Nicolas67 » Fri Sep 05, 2014 1:41 pm

This is my english file. This version is very detailed (each variable, parameter or equation are explicated so if someone may help me, it is not complicated to understand my model).
thanks so much
Attachments
modeltransfert.mod
(11.27 KiB) Downloaded 95 times
Nicolas67
 
Posts: 2
Joined: Fri Sep 05, 2014 9:47 am

Re: Error. division by

Postby HoutanBastani » Mon Sep 15, 2014 3:36 pm

Hi,

The problem is in equation 44 (and probably 45 as well) when converting to the static model:
Code: Select all
// transfer rule (part)
tauTH = ((YH-YH(-1))/YH(-1)) / (((YH-YH(-1))/YH(-1)) + ((YF-YF(-1))/YF(-1)));
tauTF = ((YF-YF(-1))/YF(-1)) / (((YF-YF(-1))/YF(-1)) + ((YH-YH(-1))/YH(-1)));

If you remove the lags, you have division by zero.
Best,
Houtan
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