Hi, Im trying to run A basic new-keynesian model with Epstein-Zin preferences (its a simple version of Swanson´s working paper "A Macroeconomic Model of Equities and Real, Nominal, and Defaultable Debit). But I’ve got this problem:

Residuals of the static equations:

Equation number 1 : 0.020525

Equation number 2 : 0.87743

Equation number 3 : 0.99

Equation number 4 : 0.14159

Equation number 5 : 0.025505

Equation number 6 : 0.0088414

Equation number 7 : 3.8788

Equation number 8 : 0.062289

Equation number 9 : 0.4588

Equation number 10 : -0.020182

Equation number 11 : 0.010517

Equation number 12 : -0.10875

Equation number 13 : 1.5278

Equation number 14 : -0.032578

Equation number 15 : -0.026942

Equation number 16 : 0

But I calculate steady state by hand 3 times in a row… My model is attached. I have doubt about my Epstein-Zin preference (using auxiliary Variable). Could help me???

Thanks.

modelo1_EZ_persistente.mod (3.17 KB)