NK model with deep habits


For my master dissertation I am trying to estimate a simplified version of the Deep Habits model estimated by Zubairy (2010). In particular, I am interested in the effects of monetary policy so I excluded both government and capital.

As a first step, I want to calibrate all the parameters of the model to check if the impulse responses are correct. However, I make some mistakes in the steady state file and matlab cannot calculate it.

This is the first time I use Matlab and dynare and I’m trying to understand all the technicalities from other codes but I still make some mistakes, most likely very silly.

Can someone give me some hints? I attached the mod and the steady state files.

Thanks for helping me!
dh_steadystate.m (3.23 KB)
dh.mod (3.04 KB)