small open economy with working capital requirements for k

This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location where you will have to reset your password.
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.

small open economy with working capital requirements for k

Postby run_dmc » Thu Jun 29, 2017 3:17 pm

I'm currently trying to replicate a SMO model with WC requirements, but simplifying it by assuming that only capital is subject to these constraints. When I run my mod file, I get the following error:

Some element of Newton direction isn't finite. Jacobian maybe singular or there is a problem with initial values.

I've been trying to work around it w/o any success. Can anyone give me a hint on how to fix it?

Thanks!
Attachments
floating_default_baseline.mod
mod file
(15.45 KiB) Downloaded 52 times
run_dmc
 
Posts: 2
Joined: Thu Jun 29, 2017 3:10 pm

Re: small open economy with working capital requirements for

Postby run_dmc » Thu Jun 29, 2017 5:54 pm

i here attach the full model in case it helps
Attachments
baseline_codes.rar
(7.72 KiB) Downloaded 67 times
run_dmc
 
Posts: 2
Joined: Thu Jun 29, 2017 3:10 pm

Re: small open economy with working capital requirements for

Postby jpfeifer » Tue Jul 04, 2017 12:46 pm

It seems you are computing the steady state analytically, but for some reason, it does not solve the model. Have you checked if the equations with residuals are correct?
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany


Return to Dynare help

Who is online

Users browsing this forum: No registered users and 5 guests