Consumption and Real Exchange Rates with Incomplete Markets and Non-traded Goods

Hello, I am trying to replicate the model of the paper by Gianluca Benigno and Christoph Thoenissen (which I attach below).
I was copying all the equations that they use in their work, where I got a total of 38 equations and 38 variables.

And the model throws me the following: Blanchard & Kahn conditions are not satisfied: indeterminacy.

with model_diagnostics (M_, options_, oo_): No obvious problems with this mod-file were detected.

I think that perhaps the error is in how I am modeling the shocks, since in the paper it puts them as matrices A = Omega * A (-1) + mu, where A is a matrix A = [AH, AF, AN, ANstar] and mu = [muH, muF, muN, muNstar].

Any help would be highly appreciated.

model.txt (6.4 KB) Referencia.pdf (751.1 KB)

No, it’s not about the exogenous process. You are missing explosive roots, so only turning the VAR explosive would help.

I would recommend checking all equations for their timing and signs.