Dynare forums

Dear Prof Pfeifer,

I try to run the model in attached paper by normalising the variables by no of patents. I take the stead state value of growth in patents to be 1. I have re checked the model so many times but cannot find the error. Is the error stemming from the fact that I assume dn in steady state to be 1? How would you suggest rectifying it? I increased maxit but still the problem persists.

Best,
Ammu

Use the

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resid

command before

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steady

You will see that equation 10 is the only one with a residual. Either that equation is wrong, or your steady state. Also, as you are providing an analytical steady state, you should be using a

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steady_state_model

block, not an

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initval

block