There seems to be something wrong with your plotting. Your mod-file is equivalent to
[code]display(‘Inital Steady State’);
A = 1;
beta = 0.95;
delta = 0.02;
alpha = 0.25;
n = 0.0;
kss_0 = ((alphaA)/((1/beta) - (1 - delta)))^(1/(1 - alpha))
css_0 = A(kss_0^(alpha)) - kss_0*(n + delta)
% -------------------------------------------------------
% DECLARE ENDOGENOUS VARIABLES
% WITHOUT TIME, AS IN THE STEADY STATE
% -------------------------------------------------------
% Number of variables: 5
var k, c ;
% -------------------------------------------------------
% LIST OF PARAMETERS
% -------------------------------------------------------
parameters beta, sigma, delta, alpha, n, A;
beta = 0.95;
sigma = 1.5;
delta = 0.02;
alpha = 0.25;
n = 0.0;
A = 1.5;
% Final Steady State
kss = ((alphaA)/((1/beta) - (1 - delta)))^(1/(1 - alpha));
css = A(kss^(alpha)) - kss*(n + delta);
% -------------------------------------------------------
% MODEL DESCRIPTION
% -------------------------------------------------------
model;
% i) Resource constraint
A*(k(-1)^(alpha)) = k*(1 + n) - (1 - delta)*k(-1) + c;
% ii) Euler equation
# aux = 1 - delta + alpha*A*(k^(alpha - 1));
# u_1 = 1/c^(sigma);
# u_2 = 1/c(+1)^(sigma);
u_1 = beta*u_2*aux;
end;
% -------------------------------------------------------
% COMPUTING THE STEADY STATE
% -------------------------------------------------------
initval;
k = kss;
c = css;
end;
steady (solve_algo = 0);
check;
% -------------------------------------------------------
% COMPUTING THE DYNAMICS
% -------------------------------------------------------
initval;
Initial Steady state
k = ((alpha*1)/((1/beta) - (1 - delta)))^(1/(1 - alpha));
end;
simul (stack_solve_algo=0, periods = 90);
rplot c k;[/code]
which delivers nice graphs for c and k.