Dear all,
Attached are the symmetric equilibrium conditions of Melina & Villa’s work, “Fiscal Policy & Lending Relationships”. I am trying to replicate the paper but i don’t understand which symmetric equilibrium conditions to include in my model block, do I include them all? If I do that, I then need to include most of the equations as variables and provide intial value for them which I don’t have.
Any help on this will be highly appreciated.
melina,villa.pdf (140 KB)