Hi there
I’ve built a 2-country NK model with habit persistence preferences, capital adjustment costs and rigidities in price setting (Calvo).
4 equations show residuals when I want to find the steady-state. I’m not able to find a mistake, I’m looking for it since days…
I appreciate any kind of comment / hint / advise.
Many thanks!
NK_2country.mod (8.2 KB)
I’ve updated the file. Finally, only the labor supply equation causes difficulties.
Model:
2-country NK model.pdf (108.8 KB)