[quote=“jpfeifer”]You are the model builder. There is one and only one timing that economic logic is going to dictate. You need to find it. All I am saying is that your original model equation most probably does not say
r_t=s_t E_t(s_{t-1})+rfshock_t
Sidenote: the eigenvalues are about the system of variables, not individual ones. The BK conditions are almost always about a wrong timing of variables.[/quote]
I am back to the drawing board sir. Thank you. I will keep you posted.