Hello all,

I am trying to run a New keynesian model with capital and variable capital utilisation, but I am some issues with the steady state. I have written the code immaculately so I am not sure what I am doing wrong. I have attached the file…The error i am getting is:

Residuals of the static equations:

Equation number 1 : 0

Equation number 2 : 0

Equation number 3 : 0

Equation number 4 : 0

Equation number 5 : 0

Equation number 6 : 1.0001

Equation number 7 : 0

Equation number 8 : 0

Equation number 9 : 0

Equation number 10 : 0

Equation number 11 : 0

Equation number 12 : 0

Equation number 13 : 0

Equation number 14 : 0

Equation number 15 : 0.9799

Equation number 16 : 0

Equation number 17 : -0.9799

Equation number 18 : 0

Equation number 19 : 0

nk4.mod (2.45 KB)