Hi,
I am beginner with Dynare. When replicating the results of the baseline model in the paper Ebell (2011). On the cyclicality of unemployment: Resurrecting the participation margin, I have some problems with finding the initial values for endogenous variables.
I followed the steps in the appendix taking some target values (for f, q, l) and steady values (for w and c), and I also have some derived equations from the steady state equations, but a number of equations cannot seem to be balanced and have non-zero residuals.
Can anyone please let me know what I have done wrong and what would be the correct way to solve the problem?
Beste!
baseline.mod (2.1 KB)