Good morning everyone,

I am currently building a static general equilibrium model to analyse the impact of imports and computer utilization on the skill premium and manufacturing sector size.

My codes work perfectly when I only evaluate the impact of imports, or when I add computer utilization in one of the sectors. When I try to allow for the possibility of utilization both in services and in manufacturing, the code can’t find the steady state.

Do you know how to solve this problem.

I attach the codes used for the different exercises.

ICT_manufacturing.mod (6.6 KB)

old_balanced_trade.mod (6.2 KB)

services_ICT.mod (6.7 KB)

trade_ICT.mod (7.7 KB)

The steady-state value of the unit step response of the system is called its **DC gain** . It is also the ratio of system output and input signals when transients die out. DC gain=y(∞)=limt→∞y(t)for u(t)=1(t). therefore by definition, DC gain=y(∞)=1/2.

In `trade_ICT.mod`

, you did not provide an initial value for `ICT_n`

.

Thank you so much professor Pfeifer. The code indeed now works, but it still unable to find the steady state. The strange thing is that the sum of residuals changes massively even at the slightest change of some parameters. I can’t understand whether there is an error in the equations or if the steady state is incompatible with the parameters I insert.

If slight changes induce big changes in residuals, there are strong nonlinearities or even an asymptote. This will be hard to debug, because you don’t know whether the problem is with the steady state or the entered equations. I can only recommend trying to compute the steady state by hand with pencil and paper.