The sum of square if residuals of the statis equation is 20.8990

Steady state
1

Hi, any idea to reduce the value of the residuals to reach the steady-state values. Enclosed my file below for review.

Tax_5.mod (3.1 KB)

Thank you for your time.

2

Can you please check? I am getting a syntax error.

3 
    // Steady state values
    pi_bar = pi;
    y_bar = y;
    i_bar = i;

is incorrect. Use the steady_state-operator instead. Also check your model.
The Euler equation usually is

c^(-sigma) = beta*(1+i)/pi(+1);