# Why didn't my capital change from zero

**URL:** <https://forum.dynare.org/t/why-didnt-my-capital-change-from-zero/22281>\
**Category:** Stochastic simulations\
**Created:** [14 April 2023 09:17 UTC](https://forum.dynare.org/t/why-didnt-my-capital-change-from-zero/22281 "2023-04-14T09:17:02Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![wangshiye](https://forum.dynare.org/letter_avatar_proxy/v4/letter/w/48db29/32.png) [@wangshiye](https://forum.dynare.org/u/wangshiye)\
**Post date:** [14 April 2023 09:17 UTC](https://forum.dynare.org/t/why-didnt-my-capital-change-from-zero/22281/1 "2023-04-14T09:17:03Z")

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I am a beginner of the DSGE model. I was recently looking at Gertler’s (2011) paper and I wanted to emulate his model. So I want to start with a simple model, and I don’t have the commercial banking sector in my model. I want to see how the other variables of the model respond to the capital efficiency utilization shock. However, I find that under the shock, my capital stock starts from non-zero and gradually moves towards steady state. The change in the capital stock in Gertler, on the other hand, starts from zero. I don’t have Gertler’s (2011) code, so I can’t check it myself. I’m trying to figure out what’s causing this.  
[model3.mod](https://forum.dynare.org/uploads/short-url/pBOiuf6cFyxBZYXcvLrqWXYk89Q.mod) (1.9 KB)  
 ![670686192a88d9985adefc1c887e5a3](https://forum.dynare.org/uploads/default/original/3X/5/c/5c3e061b974caecc3f3d2f788b66da9ab9fad508.png)  
 ![faf5611a6eea9216a42b19c4dc8bc14](https://forum.dynare.org/uploads/default/original/3X/1/2/12e61888bc1b751d606777d3bcc2b228dac1ba7f.png)

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [14 April 2023 12:45 UTC](https://forum.dynare.org/t/why-didnt-my-capital-change-from-zero/22281/2 "2023-04-14T12:45:49Z")

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Do you have adjustment costs for capital/investment?
