I am trying to solve a RBC model with endogenous labor supply, however I get the error message “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.” Meaning all my steady states are not computed and I get the further error that my steady state contains NaN or Inf.
The production function is
yt = exp(theta_t)k^α h^(1−α)
with theta being AR(1) serial correlated:
theta = ρ*theta(-1) +εt.
The utility function is
U( c )= c^(1−σ)/(1−σ) −θ*h^(1+χ)/(1+ χ)
Your help would be greatly appreciated. Thanks.
RBC.mod (1000 Bytes)
must be incorrect, because it returns a complex number. Did you have a look at
This file has been truncated.
* This file presents a baseline RBC model with TFP and government spending shocks, calibrated to US data from
* 1947Q4:2016Q1. The model setup is described in Handout_RBC_model.pdf and resembles the one in King/Rebelo (1999):
* Resuscitating Real Business Cycles, Handbook of Macroeconomics, Volume 1 and
* Romer (2012), Advanced macroeconomics, 4th edition
* The driving processes are estimated as AR(1)-processes on linearly detrended data.
* This implementation was written by Johannes Pfeifer. In case you spot mistakes,
* email me at email@example.com
* Please note that the following copyright notice only applies to this Dynare
* implementation of the model.
* Copyright (C) 2016 Johannes Pfeifer
* This is free software: you can redistribute it and/or modify
* it under the terms of the GNU General Public License as published by
* the Free Software Foundation, either version 3 of the License, or