Hey, I made a code and it wont compute, can you tell me what is wrong with it?
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var x pi i u Ex Epi ;
varexo epsilon;
parameters beta kappa gamma rhou phipi ;
%---2. Calibration---
beta=0.99;
kappa=0.13;
sigma=1;
rhou=0.9;
phipi=1.5;
%----3. Model----------
model(linear);
Ex = x(+1);
Epi = pi(+1);
x = Ex - (1/gamma)*(i - Epi)+u;
pi = beta*Epi + kappa*x;
i = phipi*pi;
u = rhou*u(-1) + epsilon;
end;
%% No need to include initial starting values if you are simulating a log-linearized model%%
shocks;
var epsilon;
stderr 1;
end;
steady;
stoch_simul;