Problems with Ambrogio Cesa-Bianchi model

Hi everyone,
I’m a novice user of Dynare so I pray you to be a little patient with me. My teacher and I would like to transfer the financial accelarator to the canonical DSGE model. So we tried to add some of the equations considered in the model of Ambrogio Cesa-Bianchi (2012) to the canonical model written by Torres (2013), but unfortunately there are some problems (you can find our attempt attched).

Could you give me some suggestions, please?


model13ff.mod (2.25 KB)

It seems you are trying to mix linearized and nonlinear equations. It’s probably easiest to fully linearize the model.

Thank you!