Dear all,
I am trying to estimate a DSGE model in Stata 15 and have received the following error message:
Equation 21 in this case is
Li then appears only in one equation, the Taylor rule, which I have formulated as
I have used this type of equation to model lags for several other endogenous variables in my model without a corresponding error message.
I look forward to receiving some information on this error.
Many thanks,
Pauline Pohl
I am trying to estimate a DSGE model in Stata 15 and have received the following error message:
Code:
equation 21 appears nonlinear r(498);
Code:
(F.Li=i, state noshock)
Code:
(i={rhoii}*Li+(1-{rhoii})*({phi_pi}*(pif-{pi_target})+{phi_y}*(yf-{y_target}))+ei)
I look forward to receiving some information on this error.
Many thanks,
Pauline Pohl