I am trying to extend the classic nkm with heterogeneous expectations. After that I want to investigate it at the ZLB. I intend to do this with dynareOBC. But before I include the ZLB I want to run the model like this. Unfortunately I have problems with it.
I would be enormously grateful for input.
heterogeneous expectations.mod (2.7 KB)
he_error.txt (1.2 KB)
Your model shows instability. Does it work with homogenous expectations?