Hi,

I have been trying to solve a small scale deterministic RBC model with non-ricardian agents. I have computed the steady state analytically and included the computations in the code, but when I run it the model does not converge to small values for the SSR. I have checked with different values for the calibration but a very high SSR (see below).

Any advice on how to circumvent this please? Thank you very much.

Residuals of the static equations:

Equation number 1 : -5.5757e-06 : 1

Equation number 2 : -6591.7719 : 2

Equation number 3 : -1014.5891 : 3

Equation number 4 : -945.9313 : c_I

Equation number 5 : -0.12012 : w

Equation number 6 : 0.015331 : r

Equation number 7 : 2200.8775 : Y

Equation number 8 : 899.4046 : k

Equation number 9 : 0 : T

Equation number 10 : 0 : G

Equation number 11 : -1723.0424 : C

Equation number 12 : 2053.4765 : N

Equation number 13 : -2600.0846 : I

Equation number 14 : -64.6393 : 14

Equation number 15 : -2176.007 : 15

test_rbc_nonric.mod (2.7 KB)