I am trying to enhance Gambacorta and Signoretti paper by adding a disturbance shock for the loan amount as well as an impatient household.
Although, i manage to replicate the original paper with the help from the authors and getting initial values using Fsolve, i cannot find the steady state with the new items i have added. Basically, the solver stops prematurely, so i am not sure whether it is because of the No of iteration or a model without a solution.
Can you help?
Attached is the file .m file used to find the solution.
DSGE_19.m (3.7 KB)