Hi, I am working on a RBC model with endogenous discount factor with working capital constraint for firms…
expectation sum mu_t U(ct,ht)+lambda_tbudget constraint + eta_t(mu_t-mu_t-1*f(ct-1,ht-1))
I am pretty sure steady state exists… I calculate steady state equations by hand and solved it by fsolve… However, dynare always says
The generalized Schur (QZ) decomposition failed. For more information, see the documentation for
Lapack function dgges: info=12, n=10. You can also run model_diagnostics to get more information on
what may cause this problem.
Does that mean I don’t have a unique steady state??
baselinevar.mod (1.3 KB)