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.