Two-sector Model

Steady state
1

Hi, dynare forum members!

I trying to find my steady-state in a two-sector model. I facing some problems with my code that has positive residual for the Euler equation, and that just converge with high initial capital values. Could you guys help me? model.mod (3.0 KB)

2

You should try to analytically compute the full steady state. As is, your model essentially solves for all variables being infinity, which is strange. There is most probably still a mistake somewhere in your equations.