RBC Habit Formation cannot find Steady State

Steady state
1

Hello Everyone,

I am trying to solve the RBC Model with Habit Formation for the steady state values. However, I always get the error: “Impossible to find the steady-state. Either the model doesn’t have a steady state, there are an infinity of steady states, or the guess values are too
far from the solution”

These RBC model extensions are based on Eric Sims’ lecture notes available here under “RBC Extensions”: www3.nd.edu/~esims1/grad_macro_16.html

Pages(11-13)

How can I fix this issue? Or what is wrong with my codes?

Thanks in advance

new.mod (788 Bytes)

2

Hi, the steady-state of your model is not specified. You must add it to your mod file with initval or steady_state.

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new.mod (1.2 KB)

4

thank you very much