Hello everyone, I am trying to create an RBC model, but I do not know why it always said “Impossible to find the steady state (the sum of squared residuals of the static equations is 0.0052). Either the model doesn’t have a steady state, there are an infinity of steady states, or the guess values are too far from the solution”
It would be great if you can help me. Thank you!
mymodelplus.mod (1.8 KB)
Your linearization of
c=beta^theta1*(1+c(+1))*(r(+1)-r_ss+1-delta)^theta1-1;
y=c_ss*c/y_ss+i_ss*i/y_ss+(fai*y_ss-1)*g2/y_ss+g3/y_ss;
is incorrect as there are still variables appearing nonlinearly.
Thank you very much! I have corrected this equation and my code runs successfully.