Hi everybody,
I am finding some troubles in computing the staeady state of a baseline RBC model. Please find attacched the .mod file. Doubts are:
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Is it correct to claim that residuals have to be zero in all the equations to compute steady state? In that case I can’t get why residuals for Euler equation are not zero and residuals for TFP are NaN.
RBC.mod (618 Bytes) -
If I do not have a steady_state_model block, should I provide a “initval;” block before the “steady;” command?
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If I have a “steady_state_model” block, is “initval” block redundant?
Thank everybody for the support, I am a beginner in dynare and I am finding some difficulties.