Simple RBC model with small residual but impossible to find steady state

Hi dear community,

I have an RBC model set up. I don’t know why it always said ‘Impossible to find the steady state’. The MOD file should still be running as only one equation has a small residual.

It would be great if you could help me, thank you!
Endo_H_2.mod (7.9 KB)

Hi Dynareists,

Please Could anyone give some suggestions? I greatly appreciate your advice!

But why do those two equations have residuals? Are you sure there is no mistake in the model causing this?

Hi jpfeifer, thank you so much for your reply.

I checked steady states and FOCs to ensure the model has no mistakes. Is it possible that the errors are caused by redundant equations or problem with singularity?

No, that should not affect the steady state.

Could that be the way I solved for steady states was wrong?

Yes, that may be the case. See my initial question:

I checked solutions for steady states. There are no typos or mistakes so the MOD should be running. I have four different types of labor supply (impatient and patient for housing goods firm and final goods firm respectively) but I used one wage variable for these labor equations. Should I use four wage variables?

I don’t know the model, so I don’t know the answer. But given your problem in finding the steady state, a conceptual mistake seems quite likely.