Hello guys!
I am trying to run an extended version of a New Keynesian model with search and matching frictions - featuring incomplete markets (Tractable HANK, i.e., degenerate distribution across types). I cannot understand why the Blanchard Kahn conditions are not satisfied (indeterminacy). I have attached the relevant files.
Thank you very much in advance!
NEW_HANK_JL.mod (16.7 KB)
NEW_HANK_JL_steadystate.m (7.9 KB)
NEW_HANK_JL_stationary.m (2.1 KB)
eta_b.m (542 Bytes)
zeta_b.m (430 Bytes)
varphi.m (468 Bytes)
LM_eq.m (451 Bytes)