Question on the model setting

General DSGE Modeling
1

Dear Professor Pfeifer,

I’ve learned the BGG’s model with financial accelerater, which contains only one type of capital in the production function and balance sheet. While I wonder if I could contain two types of heterogeneous capital in production function and balance sheet. It might be so complex that I have no idea whether it could make any sense. Is there any paper that has considered about this case before?

Thank you for your time on this.

2

Sorry, I don’t know the answers. You have to do a literature search. Whether something makes sense is for you to decide. I guess you want to answer a particular question and should have some leeway on which model to use.