Failure in DSGE modeling including homework sector (Benhabib et al.,1991)r

General DSGE Modeling Replication Attempts
1

During advanced macroeconomics course, I have been trying to represent the outcomes discussed in Benhabib et al.(1991), and matlab told me the steady state cannot be find. It will be appreciated if someone well-behaved in matlab operation can achieve original illustration.

The paper`s information are as follows.

Homework in Macroeconomics: Household Production and Aggregate Fluctuations
Jess Benhabib, Richard Rogerson, Randall Wright
Journal of Political Economy, Vol. 99, No. 6 (Dec., 1991), pp. 1166-1187
https://www.journals.uchicago.edu/doi/10.1086/261796

2

I doubt someone has a full replication lying around. Maybe you could share your try in the hope that people can improve upon it.

3

Thanks for focusing on my question! Here is my replicating code. code.pdf (20.5 KB)