I took the traditional deterministic neoclassical growth model and extended it by adding a female agent in the household. Both agents supply hours individually but consume and save jointly. Besides, I added “on-the-job” human capital accumulation for each type of agent (male and female), i.e., the human capital law of movement is a function of hours worked. All functional forms are standard.
I can’t solve for the steady-state analytically. Dynare can’t solve it numerically.
Does anyone have an insight about why Dynare is not able to find the steady-state in this setup?
simulation_v2_3.mod (4.8 KB)