I am trying to run a calibrated TANK model and incorporated a habit parameter for consumption. I get two non-zero residuals for the static equations (which are similar in size, of opposite sign). console_tank.m contains the parameters, TANK2.mod is the actual mod file. It is based on the TANK notes of Valerio Nispi Landi (which, without habit, exhibits oscillating IRFs for consumption, which I also don’t really understand). Any advice/explanation is very much appreciated.
Please find enclosed a corrected version of your code. There were several mistakes in your steady-state calculations.
TANK2.mod (6.1 KB)
Thank you very much. I appreciate the time and effort that went into your input.