Hi all,
I created a code for a RBC model with external habit formation (non-linear) and it worked.
Now I am trying to log linearised the model and make a code for it. However, when I run the code I get that the Blanchard Kahn conditions are not satisfied but I don’t really understand why.
If someone could help me I would really appreciate.
Thanks External_hab_lin.mod (1.7 KB)