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  • DSGE model

    Code:
    dsge (nx = -{sigma}*con -{delta}*la+ {psi}*mw+{theta}* ToT) ///
    (con=E(F.con)-1/{sigma}*(log{beta}+r)) ///
    (F.mw = mw+v) ///
    (F.v = {rhov}*v, state)
    Code:
    dsge (nx = -{sigma}*con -{delta}*la+ {psi}*mw+{theta}* ToT) ///
    (con=E(F.con)-1/{sigma}*(log{beta}+r)) ///
    (w = {phim}*mw+v) ///
    (p={phip}*mw+u) ///
    (F.v = {rhov}*v, state) ///
    (F.u = {rhou}*u, state)
    When I regress the first one, the stata sent a message "state equation incorrectly specified", the second one " cannot have more variables than shocks"
    How can I handle this?
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