Replicating Pengfei-Wang(2012)

Hi all,

I am trying to replicate Pengfei-Wang(2012) “Understanding Expectation‐Driven Fluctuations: A Labor‐Market Approach.” paper. But I have some trouble, for example

ERROR: If the model is declared linear the second derivatives must be equal to zero.
The following equations had non-zero second derivatives:
* Eq # 2

I think it should be that Euler equation is being solved wrong. Or there are other problems, please give guidance. Any help would be greatly appreciated. wangModel1.mod (1.7 KB)
thanks all.

You declared your model as linear, but Nt^(1+gamm_n) is clearly nonlinear.

thanks professor, I will solve again to see what went wrong.
best wishes!