Greenwood, Hercowitz and Krusell

Sorry, I’m replicating the article of Greenwood and al, “The role of investment-specific technological change in business cycle”… and I have a problem to do this, precisely I can’t easily calculate my steady state for the two capital variable: equipment capital and structural capital because with the equation I found, we can’t because we have the presence of on in the equation of the other for my two equations.
Someone know how to deal with this?
Anybody have already do this?
Thank you

And I got this message:
Error using print_info (line 57)
Impossible to find the steady state. Either the model doesn’t have
a unique steady state of the guess values are too far from the
solution

Please post a mod-file

This is my mod-file…Can give me an advice or help? thanks
ghkx.mod (2.75 KB)

Your parameter settings do not coincide with the ones in Greenwood/Hercowitz/Krusell. Moreover, your model equations are wrong as they are not correctly detrended. In most of the equations the growth rates are missing.

OK thank you! I will work on it!