Hi,
I am working with a 2sector rank model, for which I am unable to find the steady state.
As my experience in dynare is very limited, I would really appreciate it if someone could help me by saying whether it is something about the dynare code in particular that seems to be wrong, or if it is the ingoing model equations that are likely to be wrong.
I have tried using the steady; command and then get the message that “The steady state contains NaN or Inf”. I believe that I know what the steady state should be (the error messages suggest otherwise, though) and have also tried writing down a steady_state_model block. That does not seem to work either (however “only” 2/15 equations have non-zero residuals).
Again, would really appreciate help/feedback!
Attaching the code.
twosectornonhom.mod (2.5 KB)