Hello everyone,

I’m completely new to Dynare and want to create a simple RBC model.

I’ve encountered errors related to maximum cardinality matching and am unsure how to fix this.

Can anyone take a quick look at the code?

Thanks a lot

```
var
C // Consumption
B // Bonds
Y // Income
R // Interest rate
Lambda // Lagrangian (Shadow cost of consumption)
a // Variable Endogenous variable representing productivity
I // Investment
K // Capital
Y_f // GDP
;
varexo epsilon;
parameters
beta // time preference
y0 // exogenous steady-state level of income
b0 // initial level of bonds
rho // persistence of the productivity shock
sigma // size of shock
alpha // capital share in output
delta // depreciation rate
l // labor
;
// Assign values to the parameters
beta = 0.99;
y0 = 1;
b0 = 0;
rho = 0.95; // Persistence of the AR(1) shock
sigma = -1; // Standard deviation of the shock
alpha = 0.36;
delta = 0.1;
l = 1;
model;
1/C = Lambda; // First-order condition for consumption
Lambda = beta * R * Lambda(+1); // Euler for Household
Y + R(-1) * B(-1) = C + B;
Y = y0 *(a);
B = b0;
log(a) = rho * log(a(-1)) + sigma * epsilon;
Y_f = K^alpha * l^(1-alpha);
I = K - (1 - delta) * K(+1);
1 = beta * alpha * (Y_f(+1)/K(+1)) + beta * (1 - delta); // Euler for Firm
end;
steady_state_model;
Y = y0;
B = b0;
R = 1 / beta;
C = Y + R * B - B;
Lambda = 1 / C;
a = 1; // This would mean a = 0, as log(1) is = 0
K = (alpha * y0) / (R + delta);
Y_f = K * (1 - beta*(1 - delta)) / (beta * alpha);
I = delta * (K /l);
end;
shocks;
var epsilon; stderr .1; // Define the standard deviation of the shock
end;
steady;
resid;
check;
```