Dynare forums

Dear All,


I have a problem with convergence in small model. Initial values used in the model are calclulated steady state values but still the results show spurious convergence.
The file is attached.



Thanks in advance for your help.
Alex

Your model contains deterministic growth. I don't think there exists a steady state. I'm not sure either that b is uniquely determined, but I may be wrong on that one.

Best

Michel