I am trying to replicate Ghironi and Melitz 2005 paper International Trade and Macroeconomics Dynamics with Heterogeneous firms but I am facing a problem with dynare stating that there are 7 eigenvalues bigger than one for 6 forward looking variables. I have read the previous posts with similar problems but nothing works. I have attached my mod file so you can check it.
thank you very much for your help
ghironi.mod (1.86 KB)