Problems of portfolios choice‏ in an open economy

Hi, everyone!
I’m trying to replicate the results the paper “Leverage constraints and the internaional transmission of shocks” (1) by Michael B Devereux and James Yetman, while they use the solution of another essay “Country portfolios in open economy macro models”(2). Problems are:
1.How to get R1 R2 D1 D2 of page35 of paper (2).
2.I just take a log-linear approximation of the model in paper(1), but I am not sure dNFA=NFA(t)/Ci ??, Ci refers to the steady state of consumption of investors in home country.
I would appreciate any help on this matter. Thanks!!
log-linear.mod (4.22 KB)
paper2.pdf (348 KB)
paper1.pdf (240 KB)

Look at the web page of alan sutherland .
you can find the replication code you need.
maybe it can help

Have you solved this problem now?