Dear all, I do not understand why I am having such a hard time finding the steady state of this RBC model with external habits.
First, I tried this:
A = 1;
r = 1 / beta - 1 + delta;
koh = ( r / alpha )^( 1 / ( alpha - 1 ) );
coh = koh^alpha - delta * koh;
h = ( ( 1 - beta * phi ) / ( 1 - phi )^(sigma) * ( 1 - alpha ) / psi * koh^alpha * coh^( - sigma) )^( 1 / ( varphi + sigma ) );
k = koh * h;
i = delta * k;
y = A * k^alpha * h^( 1 - alpha );
w = ( 1 - alpha ) * koh^alpha;
c = coh * h;
Then I wrote a helper function, but without success again. Could you please help me?
Thank you all in advance.