DSGE Model Problem - Steadystate

[ofrank]

Dear friends,

I'm looking for some help. The code is based on the work of Grith (2007): Monetary and Fiscal Policy in a Two Country Model with Sticky Prices. There is the following error message when I run the model: "In an assigment A(I) = B, the number of elements in B and I must be the same). It refers to the file "DSGE_Steadystate".

I would really appreciate if you guys could help.
Thanks a lot.

Regards,

Oscar

[jpfeifer]

Your steady state file does not conform to any Dynare rules on how to supply steady state values. Search the forum on how to do this, look at the examples provided with Dynare and check
http://www.dynare.org/manual/index_20.html.

[ofrank]

Dear jpfeifer and friends,

Jpfeifer, thanks for your response. I have substituted the "DSGE_steadystate" line for "steady(solve_algo=0)". It computes the steady state values of all variables. But, before the initial value of the posterior, there is another error. If use "mode_compute=5" (Marco Ratto's mode), the message is:

"Subscripted assigment dimension mismatch"

If I use "mode_compute = 1" (fmincon), the message is:

"FUN must return a non-empty objective function".

Can anybody else help me?

Thank you all.

[ofrank]

Hi all,

I still need help from the question I did above. Please, any response would be very useful.

Another question: when I use the "stoch_simul" command, I don't get any image with the response functions. What's the problem here?

Thank you very much.

Oscar

[jpfeifer]

Could you post the new mod-file

[ofrank]

Here it is, my friend.

In the file "DSGE_Stoch.mod", I don't get impulse response functions, while in "DSGE.mod" I still get problems with the estimation.

Thank you very much again.

Oscar

[jpfeifer]

Your problem in both mod-files is the steady state, which cannot be found. You should put

Code: Select all

resid(1);

before

Code: Select all

steady;
check;


(Note that you got the order wrong.) It will show you which equations are not satisfied given the initial values (which are 0 if you use model(linear) without an initval block).

[ofrank]

Dear freind,

Thank you very much for your response! I did some adjustments and now the program displays the impulse responses!

But I still get error messages when I try to estimate the parameters. I think this is due to the values of some of the eigenvalues, that are "Inf".

In this case, do you know how to proceed? How can I know which eigenvalue is associated with an specific forward looking variable?

Thanks a lot

Oscar