More on Blanchard Kahn

Hi,

Your timing conventions are wrong for k, epsilon and u. In Dynare, the convention is that a variable appearing at date t must be decided at date t (for a stock variable, this corresponds to the end-of-period convention, while most papers use the beginning-of-period convention). See Error:The steady state contains NaN or Inf for more details on the convention for the capital stock. For the TFP, you should shift its law of motion by one period backwards.

Best,