I have 39 equations. 38 equations have 0 residual. However, 1 equation’s residual is not 0 but very small in my model. I have checked that the steady state of equation 35 is correct by the numerical numbers of steady state. And I have tried my best to check all the equations but I still do not know how to solve this problem. Hopefully someone can help me…
%equation35 market clearing
1 = C_s / Y + C_b / Y +I / Y * (1 + kappa* ( I/I(-1)-1) ^2);
error of dynare presents:
residuals:
Equation number 35 : 4.6243e-05 : 35