RBC MODEL - Chapter 3 User Guide - Different solutions

[fabio_portugal]

Hello,
I’m trying to replicate the RBC model with monopolistic competition that is anaalyzed in the User Guide – Public Beta Version (chapter 3.2) (I’m using Dynare version 3.065).

I have noted that if we change the method that is used for compute the steady state (command: steady(solve_algo = …)), the simulation leads to a two different result.

In particular, when we use steady(solve_algo=0), steady(solve_algo=1) or steady(solve_algo=2), the steady state results:

c 0.707986
i 0.184098
k 8.00426
l 0.302733
r 0.033101
w 1.7769
y 0.892084
y_l 2.94677
z 1.27447e-056

whereas if we use steady(solve_algo=3), the steady state results:

c 0.76
i 0
k 9
l 0.3
r 0.03
w 2.07
y 0
y_l 0
z 0

Moreover, as you can see from the figures, also the Impulse Response Functions (IRFs) are differents.

My questions are: Am I miss something? Where is the error in my simulation? Which is the right solution?

Thank you very much.
Fabio