An infinite element was encountered when trying to solve equation

Steady state
1

Hello,

I am trying to write a code for a basic RBC model with transitory shocks to productivity growth and government spending shocks. I checked my equations multiple times but cannot find a mistake. Your help will be much appreciated.
l.mod (1.9 KB)

A

2

Try computing the steady state analytically.

3

Hello Professor,

I tried computing it analytically but it did not work. I attached the new mod file (I noticed some mistakes, I made some changes). I also attached the paper whose model I want to replicate. For now, I am just trying to replicate the baseline model where there is no habit formation, no capital utilization decision and world interest rate is constant. Could you please help?

Letendre_2004 (1).pdf (173.4 KB)
let.mod (2.2 KB)

4

Check your approach. Why should

r=r_w_bar;

hold?

5

I solved it again and my code works. Thank you very much Professor.