Dear all,

I construct a two-sector small open economy model, I write my model in levels and compute the steady state by hand. However, dynare always report that"The steadystate file did not compute the steady state", and the “Residuals of the static equations” refer to the labor supply FOC for both types of household. I have checked the FOC many times and don’t think it contains problem. And there is no timing problem because I don’t consider capital in the model.

Could you please help me check this problem? Thanks very much!

code.mod (5.6 KB)

Here attached the code.