I am trying to solve a deterministic ramsey model with two agents. i have already found the close model solution but i am having trouble with the open one. Actually, i have solved the open model but there is foreign debt stock in the model and at steady state i want it to be zero because of transversality condition. However, it is not. I have seen one of the Michelle’s messages saying to put terminal steady state values by putting endval command but it didnot work. it still gives this variable different than zero. (really different, it calculates as 128.)
Do you have any idea? i am sending my mod file. I will appreciate any help.
Thanks in advance.
adjcostopen.mod (1.81 KB)