Good day everyone!
I am making a new Keynesian model with goverment spending and I set eight equations to solve for steady state in octave with dynare but it seems there are redundancy
Any one can help me?
Thanks!!
NKGM.mod (2.3 KB)
Your model is supposed to be linear and therefore should not contain the various constant terms. Because you have left some of them, the steady states make no sense.