I’m featuring a problem with the steady state. the model doesn’t run.
Well, I have these values of these quotients at the steady state but I didn’t know how to write them:
PFss/Pss=0.53 and PIss/Pss=0.47
also, I have a problem with this equation, I could not write P at the steady state
#Pss^(1-mu)=omega*(PFss)^(1-mu)+(1-omega)*(PIss)^(1-mu); ch3.mod (3.2 KB)
I define Pss as: P =(omega*(PF)^(1-mu)+(1-omega)*(PI)^(1-mu))^(1/(1-mu));
but the same problem persists! All equations are so related and I couldn’t understand from where to begin!
Yes I understand prof. Pfeifer. But the problem is how?
For example in the equations of formal and informal wages( WFss and WIss) they include the aggregate wage Wss. And Wss is composite of oWFss and WIss.
when I try to define WFss first Dynare tells That Wss is not defined.
And when I try to define Wss it tells me that WIss a’d WFss are not defined.
I hope that you get what I mean dear professsor!
I didn’t get a solution