thanks for the hint on the parameters, changed it and also made some further progress (I thought).
Currently trying to fix:
[quote]Impossible to find the steady state. Either the model doesn’t have a steady state, there
are an infinity of steady states, or the guess values are too far from the solution[/quote]
–> This most probably comes from a misspecification of the model, right (since I am trying to replicate a paper with a unique SS) ?
Honestly I am not so sure whether I am caputuring columbia.edu/~mw2230/credit_0709.pdf with regard to the exogenous variables correctly.
Unclear to me are how to treat G,tau,mu_omega,Z, C_bar_i and the fiscal rule for b_G. (Probably this does not belong here, are there any ECON forums where people discuss papers?)
2 MOD-files attached, deterministic and stochastic version(in which I thought I d know how to deal with the exogenous variables)
I would be grateful if someone could have a look at it ! Appreciate any help !