Simple RBC with stochastic trend


I am trying to program an RCB model with a unit root for the technological process. The attached program is the simplest form of the model where the equations are stationary. There is something wrong with the code that i am unable to spot. The IRFs and the moments are not consistent with what i obtain when i log-lin the equations and solve them with B-K method myself.

If anyone could help me out it would be greatly appreciated.


tp1_corr.mod (818 Bytes)

Without a detailed outline of what you coded, it’s impossible to provide feedback.