I’m relatively new to Dynare and tried to code a simple model with a firm that produces output and an agent who owns the firms and consumes the output.
Unfortunately, the programme cannot find a steady state even though the residuals of the static equations are very close to zero. I checked my model again and tried to increase the precision as well as the iteration number, but nothing really helped.
What am I missing?
Thanks in advance for your help!
Simple_version.mod (1.7 KB)
Simple_version.log (866 Bytes)