# Problem with solving a dsge model

Dear friends

Hi, we want to solve the appendix model, but we have a problem.
the error of dynare is Blanchard Kahn conditions are not satisfied: no stable equilibrium,

Best regards

Shima

var c D K u Y o n w g M x lnp lnR lnz lnm lnt;
%t is a labor supply shock (?);

varexo ep eR ez em et;

parameters rhop, rhoR, rhoz, rhom, rhot, sigp, sigR, sigz, sigm, sigt, betta, gamma, eppi, chi, a, deltad, delta, nuu, alpha, zetta1, zetta2, tuun, tuuc, omega, b1, b2;
%chi is the Frisch elasticity of labor supply.

rhop=0.9; rhoR=0.9; rhoz=0.9; rhom=0.9; rhot=0.9;
sigp=0.1; sigR=0.1; sigz=0.1; sigm=0.1; sigt=0.1;
betta=0.99; gamma=0.7; eppi=0.4; chi=0.2; a=0.8;
deltad=0.025; delta=0.025; nuu=4; alpha=0.7; zetta1=0.5; zetta2=0.25;
tuun=0.1; tuuc=0.1; omega=0.6; b1=0.5; b2=0.5;

model;
n^chi=(((x+ag)^(-eppi))gammax(1-tuun)w)/(exp(lnt)(1-tuuc)c);
((x+a
x=(c^gamma)
(D^(1-gamma));
w=(1-alpha)(Y/n);
delta
(u^(nuu-1))=zetta1exp(lnp)(1-omega)((uK(-1))^(zetta1-1))(M(-1)^zetta2);
b2
(1/K(-1))((K/K(-1))-1)=exp(lnp(+1))(1-omega)zetta1((u(+1)K)^(zetta1-1))(M^zetta2)u(+1)-1+(1-delta(u(+1)^nuu))+b2*((K(+1)/K)-1)(K(+1)/K^2);
Y=exp(lnz)
((omegao)^alpha)n^(1-alpha);
o=((u
K(-1))^zetta1)
(M(-1)^zetta2);
g=(tuunwn)+(exp(lnp)(1-omega)o)-(tuucc)-K+((1-delta(u^nuu))K(-1))-(b2/2)((K/K(-1))-1)^2;
M=M(-1)-o+exp(lnm);
lnp=rhop
lnp(-1)+ep;
lnz=rhozlnz(-1)+ez;
lnR=rhoR
lnR(-1)+eR;
lnm=rhomlnm(-1)+em;
lnt=rhot
lnt(-1)+et;
end;

initval;
M=2; K=1; u=1; n=0.3; D=0.5; o=1.1892; Y=0.5502; w=0.5502; c=1.262; x=.956; g=.3409;
end;

shocks;
var ep; stderr sigp;
var ez; stderr sigz;
var eR; stderr sigR;
var em; stderr sigm;
var et; stderr sigt;
end;

check;