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