Monetary policy in jermann and quadrini(2012)

hi,I have a dsge model that is same with jermann and quadrini(2012) with adding energy.i have energy price increasing shock.
I have very strange results.when financial constraint is on welfare is better than the fiancial constraint is off.(see in attached photo)
is my code have problem that is produce this results?
i attach my code and pictures.
tr.mod (6.6 KB)


why economy with financial constraint is better than without financial constraint?(inflation,production,capital and…)

and why we see precausionary behaviour from firms.it means firms cumulate capital more and more.but in my model the value function is same jermann and quadrini and it has not curvature.

It seems you are considering felicity, not welfare, i.e. you are neglecting the continuation value.

Thanks mr pfeifer.but when i correct the welfare,i run into severe problem.welfare is strictly greater when financial constraint on.
and when i decrease the persistency parameter of shock,the proble is being solved,whu this happen?

Which type of welfare comparison do you conduct? I presume the two models have very different steady states.