deterministic model

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deterministic model

Postby jameszhow1985 » Mon Mar 21, 2016 1:17 pm

Hi, Professor Pfeifer

I build a small open economy model to study foreign reserve accumulation. I want to study the transition paths of some macro variables by changing the exogenous variable,e.g financial tightness. I run into a problem after running my mod file, I find the transition dynamics of endogenous variables are constant. Why does this situation happen? I upload two of my mod files in the attachment.
Attachments
financial_friction1.mod
(3.04 KiB) Downloaded 49 times
financial_friction.mod
(2.57 KiB) Downloaded 72 times
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Re: deterministic model

Postby jpfeifer » Tue Mar 29, 2016 8:08 am

It seems no solution to your model was found. Please check the output in the command window.
The most recent unstable version finds a solution for the financial_friction.mod where d oscillates using homotopy. These oscillations suggests a timing problem.
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Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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