New keynesian model wage stickiness

Hi all,

I am trying to replicate the figures from Eric Sims notes about New Keynesian Model with both price and wage stickiness. I have some trouble with equations 2,11 and 13 but I can’t identify what is wrong.
Can someone help me?

Thank you! NKM_pricewage_orig.mod (2.6 KB)

Your definition of


is missing a bracket around (epsilon_w-1)

Let me add that your mod-file does not handle parameter dependence correctly, because you hard-code the steady state values. That is not recommended.

NKM_pricewage_orig.mod (2.6 KB)