Hello,
I have a system of 13 equations (13 endogenous variables, linear and nonlinear equations), and I try to compute various comparative statics. I have done it before for a different project but now I am stuck with an error message.
The error message is ""Power::infy: "Infinite expression 1/0 encountered."" as it enters equation g9 as 0.
Any help or proposals for efficient computations of comparative statics would be very appreciated.
(* Endogenous variables: c, L, n, k, m, u, d, q, h, \[Delta], Vl, Vc *)
ClearAll
g1 = T - c - L - P
g2 = P*A - L*(\[Rho]* m + u)
g3 = - f + n*k - G[n] - F[m] -
D[F[m], m]*( (r + \[Delta])/D[\[Delta], m]) - (r*h*Vl)/(r + h)
g4 = (P*A*\[CapitalPi])/(L*n) - k
g5 = D[G[n], n] - k
g6 = c - n*L
g7 = D[F[m], m] -
D[F[m], {m, 2}]*((r + \[Delta])/D[\[Delta], m]) - (\[Rho]*
s)/(\[Alpha]*T)*\[Psi]
g8 = n - m - u - d
g9 = (D[\[Delta], m])^2 - D[\[Delta], {m, 2}]*(r + \[Delta])
g10 = \[Delta] - Pr[q , m]
g11 = h - \[Delta]/(n + \[Delta])
g12 = Vc - ((1 + r)*h*Vl)/(r + h)
g13 = Vl - (k*n - G[n] - D[F[m], m]*((r + \[Delta])/D[\[Delta], m]) -
f )*(r + h)/(r*h)
All equations are written as gi = 0 - i=1,...,13.
Thank you!
