I have a great difficulty to linearizing the budget constraint in a paper of Justiniano and Preston (2010), titled: " Monetary policy and uncertainty in an empirical small open‐economy model" at
In particular, the level of the BC on page 96 of this paper is
P(t)C(t) + D(t) + e(t)B(t) =D(t-1)*R(t-1) + e(t)*B(t-1)*R_star(t-1)*Phi(A_t) + W(t)*N(t) + Profit_H(t) + Profit_F(t) + T(t)
and its linearized form on pape 101 is
c(t) + a(t) = (1/beta)a(t-1) - alpha[s(t) + Phi*s(t)] + y(t)
Well, I solved all other equations in this paper successfully, excepting this BC. Can someone helps me to do that since I have done so many time, it has not succeeded yet.
Thank you guys so much