I am attempting to model capital-skills complementarity and inequality over the business cycle, emulating results obtained by Lindquist (2004). However, I am experiencing some difficulty doing so. The problem is describe by the following error code...
SOLVE: Iteration 18
Spurious convergence.
-1.1102
0.0137
0.2746
0.7627
-2.2564
0.0381
-3.0609
0.0165
-0.3860
-0.0403
1.3985
0.8129
0.1485
??? Error using ==> steady_ at 132
STEADY: convergence problems
Error in ==> steady at 52
steady_;
Error in ==> lindquistsim at 195
steady;
find attached the relevant *.mod file. Any help would be greatly appreciated.
Thanks,
Alex