Hello,
I replicated the Hansen model (Ignore the W). It works when I enter initial values into the .mod file (rbcHansen.mod). However, when I create a separate m. file to calculate the steady states dynare can’t find the steady state (rbcHansen2.mod). Can someone tell me what the problem might be?
Further, I am a bit confused about the interest rate. My steady state calculations of the rbcHansen.mod do not correspond to the calculation be hand (using r= 1/beta-1 + depreciation), but instead to r= 1/beta-1. I think this problem might be related to the first problem.
Thanks in advance!
Cheers,
LEM
rbcHansen2_steadystate.m (1.74 KB)
rbcHansen.mod (1023 Bytes)
rbcHansen2.mod (1.01 KB)