Matlab cannot find steady state rbc non-ricardian

Steady state
1

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)

2

Please check all your equations. For example, the bracketing in

1/c_F=beta*(1/c_F(+1))*(1-delta+(1+tau_K*eps_k*r(+1)));

looks weird. r is dropping out in steady state for eps_k=0.

3

Thank you very much for your help Professor Pfeifer. Indeed, I had a problem with the bracketing in the Euler and completely forgot to calibrate the exogenous variables. The model converges now.