Can someone help? This is a rather basic RBC model, but BK conditions does not satisfy…
var y,c,k,l,w,r,a;
varexo e;
parameters alpha, beta, gamma, delta, rho, sigma;
alpha = 0.4;
beta = 0.98;
gamma = 0.4;
delta = 0.05;
rho = 0.9;
sigma = 0.01;
model;
y=a*k^alpha*l^(1-alpha);
c(+1)=beta*c*(r(+1)+1-delta);
(1-gamma)/gamma=(1-l)*w/c;
k(+1)=(1-delta)*k+w*l+r*k-c;
w=alpha*a*k^(alpha-1)*l^(1-alpha);
r=(1-alpha)*a*k^alpha*l^(-alpha);
log(a)=rho*log(a(-1)+e);
end;
initval;
r =0.0704;
w =9.9507;
l =0.9827;
k =0.0046;
y =0.1153;
c =0.1151;
a = 1;
end;
steady;
shocks;
var e = sigma;
end;
stoch_simul(periods=2000, drop=200);