# RBC Model with endogenous labor supply

**URL:** https://forum.dynare.org/t/rbc-model-with-endogenous-labor-supply/13110
**Category:** Steady state
**Created:** [17 January 2019 20:16 UTC](https://forum.dynare.org/t/rbc-model-with-endogenous-labor-supply/13110 "2019-01-17T20:16:20Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![econmaster](https://forum.dynare.org/letter_avatar_proxy/v4/letter/e/5e9695/32.png) [@econmaster](https://forum.dynare.org/u/econmaster)
#### Post date: [17 January 2019 20:16 UTC](https://forum.dynare.org/t/rbc-model-with-endogenous-labor-supply/13110/1 "2019-01-17T20:16:21Z")

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Hello everyone,

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](https://forum.dynare.org/uploads/default/original/2X/1/1fee4112895e150b91fb63c6fc71b5e926bde657.mod) (1000 Bytes)

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### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [18 January 2019 06:10 UTC](https://forum.dynare.org/t/rbc-model-with-endogenous-labor-supply/13110/2 "2019-01-18T06:10:18Z")

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Your computation  
`kss=((beta*uss*alpha)/(1-beta*(2-delta)))^(1/(1-alpha));`  
must be incorrect, because it returns a complex number. Did you have a look at

> <https://github.com/JohannesPfeifer/DSGE_mod/blob/master/RBC_baseline/RBC_baseline.mod>
