Hello, I’ve inserted both the model
and steady_state_model
blocks into Dynare to calculate the steady state of a TANK model. However, when running simul
, the residuals for the equations related to y
and c_r
are showing up high. There seems to be something wrong with the equations, and I’m seeking opinions.
hw4f.mod (2.1 KB)
What in your model makes sure that output is 1 in steady state and labor is 1/3?
y is normalized as 1 and h =h_ss= 1/3 is imposed
That does not answer my question. Just because you say you normalized it does not mean the parameter values of the model are consistent with these values.