Dear all, I have an OLG model with population growth. The mod file calls an external m-file with the steady state equations. After adding some debugging commands I discovered fsolve actually finds the steady state. However, I’m doing something wrong and, I suspect that, Dynare is not taking this ss correctly from the external file. Could anyone help me with this, please?
Thank you so much.
AspirationsHabitsUBI_dif_pop_PLANNER.mod (4.5 KB)
AspirationsHabitsUBI_dif_pop_PLANNER_steadystate.m (3.7 KB)
The steady state is supposed to be computed for the detrended equation system. Only for that system, a steady state even exists. For example, in the steady state file you use
y = k^alp * (z * L)^(1 - alp);
but that does not account for the time lag in k, for example.