I’m simulating a simple deterministic two-sector Ramsey model with a permanent productivity shock in one sector. I obtain full rank but cannot get convergence. Extending the periods and reducing the size of the shock doesn’t help. Curiously, a more complicated version of the same model with a BGG-type accelerator works but this doesn’t.
I’m attaching the file for reference.
Thanks.
bgg_onecons_twogoods_perm.mod (2.25 KB)