Hi, I have a code that solves steady-state analytically. but i have some problems.
1)I have two steady state. and i dont know how to work with this problem.
2) I have oil in my model that I dont know how to calibrate, so I calibrate that average propensity to consume is logical.
3)but when I run model ;dynare says perfect foresight solution not found.
I attach my dynare code.
Please help me to solve this problem.
khodaya.mod (4.6 KB)
Your model does not satisfy the BK conditions. There must still be a mistake.
thanks for your reply professor. but still model is not running. dynare says “: Simulation terminated with NaN or Inf in the residuals or endogenous variables. There is most likely something wrong with your model. Try model_diagnostics or another simulation method.”
I use model_diagnostics and it says: No obvious problems with this mod file were detected.
I use resid(1) and totally answer residual is ans =1.0e-15.
then I confused with my model, please help me.
I attach my updated dynare code.
khodaya.mod (4.6 KB)