Hi there! I am struggling to replicate this paper: Greenwood, J., Hercowitz, Z., Krusell, P., 2000. “The role of investment-speciﬁc technological change in the business cycle”.
I have derived all equations in the paper, calculated steady state. The only simplifications I made were to set TFP = z= 1, and use rate of capital h = 1.
However, I keep getting same error over and over again in Dynare: Error using print_info (line 76)
The steadystate file did not compute the steady state
Error in steady (line 104)
Residuals of the static equations:
Equation number 1 : -0.032
Equation number 2 : 0
Equation number 3 : -3.4391
Equation number 4 : 0.10797
Equation number 5 : 0
I do not understand which equations I should check to see where is the problem. For example, when there are residuals seen in “Equation number 1” - which exactly equation is this in the mod file? Please can you help or advise me? I very much hope that you will respond me.