I am working with a two sector model with non-homothetic preferences. Is there a way to deal with Engel Curves in dynare? I ask because there does not seem to be a unique steady state with these kind of preferences.
This is the first time I encounter a question like this. Do you have some reference? A non-unique steady state (arising from a unit root) is usually handled by using a steady state file that allows you to select one of the steady states consistent with the equilibrium conditions.