Hi everyone, I am trying to solve a standard NK model with Calvo pricing (for ex. Ch 3 Gali 2015), but introducing Epstein-Zin preferences in the household. In order to solve the NK model, the optimality conditions of the intermediate producers are expressed as two recursive variables to get rid of the infinite sum (see for example https://www.sas.upenn.edu/~jesusfv/benchmark_DSGE.pdf). Now, deriving these recursive variables is straightforward with standard power utility preferences, it is not as easy with EZ preferences for the presence of the certainty equivalent operator in the SDF.
I tried to find references that implement EZ preferences and calvo prices, but did not find any. Is anyone aware of a dynare code that has EZ pref + calvo prices so that I could see how the recursive variables are expressed? Thanks a lot in advance.