Dear all,

I would like to start from this https://www.sciencedirect.com/science/article/pii/S0148619511000294 log-linearized model (which follows Goodfriend and McCallum (2007) in its baseline setting https://www.sciencedirect.com/science/article/abs/pii/S0304393207000608) and analyze how it changes when we consider the second/third-order-approximation version of it .

The log-linearized version gave me no problems, I wrote it down directly in Dynare using the steady state values provided by the paper as additive parameters. However, when I tried to write down the untrasformed FOCs and equations for the nonlinear version of the model I have issues with the steady state (most of residuals are different form 0), even if I use the same ss values provided by the paper.

I think that the problem may concern the shock trends I have in the model, but I might be wrong. Could anyone help me or give me a hint?

Thanks in advance, please tell me if you need codes.