Steady-state error in my DSGE model

modelz.mod (3.1 KB)

Dear Dynare Support Team,

I am encountering a steady-state error in my DSGE model:

Error using print_info (line 33)
Impossible to find the steady state (the sum of squared residuals of the static equations is 167.6625).

I have checked my equations and initial values but cannot resolve the issue. I have attached my .mod file for your review. Could you assist in identifying the problem?

Best regards,
Eugene Msizi Buthelezi

Check your equations. For example

w = (1 - alpha) * A * K^alpha * N^(-alpha);

is missing and exp() around A. Also

K = (1 - delta)*K(-1) + K;  % Investment in capital (simplified)

cabbit be correct. Why is there capital on both sides?