Hi, I am replicating a paper ‘Demographic Structure and Macroeconomic Trends’ (2019), but got a wierd steady state. I know the analytic steady state, but with Dynare, some wierd looking outcome popped out, especially the minus depreciation rate of capital, and minus investment. What did I do wrong in my mod file, which is a little modification of the official replication file that is provided by the authors.
Aksoy_Research_No_Attrition02.mod (7.9 KB)
If you know the analytic steady state, then you should work with that one. It will guide you where the mistakes are.
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