Can not compute the steady state

Steady state
1

Dear all,

I‘ trying to build a RBC model with multiple stages of production.
I’ve eliminated a lot of the complexity of the setup by simply making production in three stages, with downstream production of goods requiring upstream intermediate products.

But I can not find the steady state value.
The residuals of w(wage) not equal to 0.

Here are 4 conditions of w.
One from household supply side and 3 from 3stage producers demand side.
I know the problem is here, but I don’t know how to fix the 4 conditions. Because all the variables are defined.

I really need some helps. Thank you very much!

Residuals of the static equations:

Equation number 1 : 0 : w
Equation number 2 : 0 : 2
Equation number 3 : 0 : 3
Equation number 4 : 0 : 4
Equation number 5 : 0 : K0
Equation number 6 : 0 : K1
Equation number 7 : 0 : K2
Equation number 8 : 0 : Y0
Equation number 9 : 0 : Y1
Equation number 10 : 0 : Y2
Equation number 11 : 0 : r0
Equation number 12 : 0 : r1
Equation number 13 : 0 : r2
Equation number 14 : -1.2392 : 14
Equation number 15 : -0.65325 : 15
Equation number 16 : -0.90445 : 16
Equation number 17 : 0 : p1
Equation number 18 : 0 : p2
Equation number 19 : 0 : p0
Equation number 20 : 0 : 20
Equation number 21 : 0 : 21
Equation number 22 : 0 : MC0
Equation number 23 : 0 : L
Equation number 24 : 0 : I
Equation number 25 : 0 : 25
Equation number 26 : 0 : 26

dynare_Q.mod (2.7 KB)

2

According to the Settings of formulas (14), (15), (16) in your model, your parameters eta1 and eta2 cannot be freely calibrated. If the equation is true, first eta1= (Y2/L2) /(Y1/L1); Also, the calibration of eta2 must be the same, according to my calculations your eta1 is probably equal to around 0.568 instead of 0.5. One problem is that you must use eta1 or eta2 in your calculation of Y2 or Y1 parameters. So, I think you might have a problem with the equation setting of labor wages.
I am a Chinese, English level is limited, I hope you can understand my general meaning.

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