Hi,

I am trying to build rbc model with investment adjustment cost. First, I stationarized the model and then I found steady states. When i run the model, the residuals does not seem nice and now i am trying to fix them. I think that I got problem in equation 9 and 13 since there is a mistake in equation 7. i do not know how to solve my problem. If anyone gives me some ideas, it would be great. best

Residuals of the static equations:

Equation number 1 : 0

Equation number 2 : 0

Equation number 3 : 0

Equation number 4 : 0

Equation number 5 : 0

Equation number 6 : 0

Equation number 7 : 1.9142

Equation number 8 : 0

Equation number 9 : -0.0087875

Equation number 10 : 0

Equation number 11 : 0

Equation number 12 : 0

Equation number 13 : 0.019839

Equation number 14 : 0

Equation number 15 : 0

Equation number 16 : 0

Equation number 17 : 0

Equation number 18 : 0

Equation number 19 : 0

Equation number 20 : 0

Equation number 21 : 0

basic5.mod (2.19 KB)