Hey guys. I want to introduce a new shock to bank discount factor(nu), so that it can make a difference in the leverages of two banks.

To be specific, I add vnu in varexo, add random_nu in variable.

and a new equation:

```
log(nu)=(1-rho_nu)*log(nuss)+rho_nu*log(nu(-1))+vnu;
```

then it shows that the Rank ISN’T verified. It confuses me a bit because I follow exactly the way the original author does.

untitled_nu.mod (7.8 KB)

consolechatnu.m (3.5 KB)

And here is the original model which can run well but the leverages in two banks are exactly the same.

untitled_chat3.mod (7.5 KB)

consolechat3.m (3.4 KB)

My purpose is to make a difference of the leverages. Their lines should have a rough symmetry and complement each other, but I don’t know how to set it.

Thank you for your assistance.

Wish you all the best !