I am trying to run a simple RBC model with a nested CES function where

```
Y_t = (mu*K_t^nu + (1-mu)*L_t^nu)^(1/nu)
```

, where `L_t`

is an aggregate labor services given by another ces function aggregating traditional and green-skilled labor: `L_t = (alpha*L_t^theta + (1-alpha)*L_t^theta)^(1/theta)`

. However, the attached .mod file gives an error: Any suggestion will be greatly appreciated.

```
Error using print_info (line 32)
Impossible to find the steady state (the sum of square residuals of the static equations
is 0.0004). Either the model doesn’t have a steady state, there are an infinity of steady
states, or the guess values are too far from the solution
Error in steady (line 102)
print_info(info,options_.noprint, options_);
Error in basic02.driver (line 263)
steady;
Error in dynare (line 281)
evalin(‘base’,[fname ‘.driver’]);
```

basic02.mod (4.1 KB)