Hi eveybody,

I am new to dynare and I have a basic stochastic RBC model with inelastic labor.

Unfortunately, my code does not work properly.

As expected for a new user, I could not detemine the main culprit although I have checked user guide.

Could anyone help me?

Best regards…

Gokhan

MY code:

var y c k lab z i;

varexo e;

parameters beta theta delta alpha gamma rho sigma;

beta = 0.987;

theta = 0.357;

delta = 0.012;

alpha = 0.36;

gamma = 2;

rho = 0.95;

sigma = 0.007;

model;

(c^theta*(1-lab)^(1-theta))^(1-gamma)/c=beta*((c(+1)^theta*(1-lab(+1))^(1-theta))^(1-gamma)/c(+1))*

(1+alpha*z(+1)*k^(alpha-1)*lab(+1)^(alpha)+(1-delta)); // Euler equation

c^theta/(1-lab)=theta/(1-theta)*(1-alpha) zk(-1)^alpha*lab^(-alpha); // FOC for labor

k=z*k(-1)^alpha*lab^(1-alpha)-c+(1-delta)*k(-1); // law of capital accumulation

z=rho*z(-1)+e; //technology

y = c+i;

i = k-(1-delta)*k(-1);

end;

initval;

k = 1;

c = 1;

lab = 0.3;

z = 0;

e = 0;

end;

shocks;

var e = sigma^2;

end;

steady; // finds the steady state

check; // provides the eigenvalues

stoch_simul(periods=2100, hp_filter=1600, irf=60, order=1); // simulates the model