Simple RBC steady state

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:

  1. 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)

  2. If I do not have a steady_state_model block, should I provide a “initval;” block before the “steady;” command?

  3. 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.

There were a few mistakes in equations. You should use an initval block if you don’t have an analytical steady state.
RBC.mod (749 Bytes)

Thank professor;
I notice that you do not declare an initial guess for marginal costs, is there a particular reason for it? Moreover, what your initial guess are based on and which variables should I include in the initval block?
Thank for the support

  1. I forgot marginal costs.
  2. You should include all nonzero variables.
  3. I used economic intuition. I guess that labor is usually around 0.2 to 1/3. With TFP equal to 1, output is often around 1, of which consumption is roughly 2/3 (0.66) and investment the rest (0.34). With depreciation around 2.5 percent, the capital stock should be 40 time investment (about 12).