I tried writing a dynare code for the paper by Boldrin, Christiano and Fisher (Habit Persistence, Asset Returns and the Business Cycle). my code is for their two-sector model in the paper. Unfortunately, dynare always get indeterminacy, I don't know why. By the way, do you guys have a sample code for two-sector model?
I attached my code
main_bcf is the driver.
TSRBC_ss is for calculate the steady state.
TSRBC is for simulation purpose.
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Problem with a simple two sector model
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Problem with a simple two sector model
by bigbigben » Sun Jan 28, 2007 5:04 am
- Attachments
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TSRBC.mod- (1.15 KiB) Downloaded 232 times
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- TSRBC_ss.mod
- (1 KiB) Downloaded 211 times
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- main_bcf.m
- (301 Bytes) Downloaded 187 times
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by MichelJuillard » Tue Jan 30, 2007 10:22 pm
Somebody told me about this problem a while ago. If I remember correctly the Jacobian of the model is singular at the deterministic steady state. There are way around it, but Dynare isn't yet equipped to handle this situation.
Best
Michel
Best
Michel
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TSRBC File Missing
by youssk01 » Sat Feb 03, 2007 5:32 am
Hi, could you kindly post the TSRBC file? many thanks, karim
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by bigbigben » Mon Feb 12, 2007 3:30 pm
[quote="MichelJuillard"]Somebody told me about this problem a while ago. If I remember correctly the Jacobian of the model is singular at the deterministic steady state. There are way around it, but Dynare isn't yet equipped to handle this situation.
Best
Michel[/quote]
Then Could you give me some sample code that handle this issue. I mean how to avoid the singular Jacobian around steady state in the two sector model?
Best
Michel[/quote]
Then Could you give me some sample code that handle this issue. I mean how to avoid the singular Jacobian around steady state in the two sector model?
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