Hello,
I am trying to write a RBC model where wages are not flexible, but follow a predetermined path: w(t)=(1+g)*w(t-1), where g is the rate of growth of the economy.
I already solved successfully the flexible wage version of the model on dynare, but now, when I substitute the first order condition for employment of the household with the predetermined path for wages I receive a message that it is impossible to find the steady state. Reference for the model is Shimer 2012 "wage rigidities and jobless recoveries".
I enclose the .mod file, hoping that someone might find the time to take a look at it.
I thank you all in advance,
Martina
Dynare forums
Forums for asking questions, posting comments and uploading examples related to Dynare
wage rigidity in a real business cycle model
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
1 post
• Page 1 of 1
wage rigidity in a real business cycle model
by emme » Thu Aug 15, 2013 9:59 am
- Attachments
-
rigid_w.mod- (1.33 KiB) Downloaded 132 times
- emme
- Posts: 3
- Joined: Tue Jun 11, 2013 9:27 am
1 post
• Page 1 of 1
Who is online
Users browsing this forum: No registered users and 5 guests