My model is a standard DGSE with a C-D production function including an energy input and a standard households’ utility function. Energy prices are stochastic. I am trying to work out the steady state of my model and it keeps returning all sorts of errors (the equations’ residual error, the NaN or Inf. error…). Please, find attached the code.
I have done some research and I keep finding that it is due to wrongly-calculated initial values. For that, I tried to analytically solve the model but I can only get the “r” and the “h”, the rest I can only get the ratios (i.e., k/y , w/y, i/y).
I do not know how to proceed and I am feeling very stuck. Could someone give me a hand, please ?
Álvaro. cd.mod (2.7 KB)