Hi,
Can anyone help me with /give me some inputs on why I cannot compute the steady state value in my estimated real business cycle model?
Thank you in advance!
/Helena
rbc_romer.mod (955 Bytes)
Hi,
Can anyone help me with /give me some inputs on why I cannot compute the steady state value in my estimated real business cycle model?
Thank you in advance!
/Helena
rbc_romer.mod (955 Bytes)
Try
steady_state_model;
A = 1; %Normalization
r = 1/cbeta-1 + cdelta;
c = (1-calpha) * ((r/calpha)^(1/(calpha-1)))^(calpha);
lab=c/((r-cdelta)*(c/(1-calpha))^(1/calpha)+c);
k=(c/(1-calpha))^(1/calpha)*lab;
inv = cdelta*k;
y = k^calpha*(A*lab)^(1-calpha);
c = y-inv;
w=c;
end;
Note that your timing for capital is strange. That may be the reason for the Blanchard-Kahn conditions failing.
Hi,
Thanks for your reply.
I tried to compute your steady state values but receive the following failling conditions:
Is this something you have seen before?
As I said above:
Check the timing.
By predetermine the variable capital (k), I can simulate the dynare code and obtain a result.
Thanks for your help