Difficulties in finding the steady state

Steady state
1

RBC_habits.mod (4.3 KB)
steadystate_helper.m (332 Bytes)

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:

steady_state_model;

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;

end;

Then I wrote a helper function, but without success again. Could you please help me?

Thank you all in advance.

2

Only do the exp()-substitution once the model works. Or better, append auxiliary variables. You are currently using A=1, but still have exp(A) in the production function. That is inconsistent.

3

Thank you very much!