Steady State Question

[jpfeifer]

That sounds strange. See

Timing of Capital and BK Condition

There is one unique timing. If the correct initial timing results in a violation of the Blanchard Kahn conditions, then there must be a mistake somewhere else. You cannot fix it by simply altering the correct timing of the law of motion for capital. That will correct the number of unstable eigenvalues, but will result in wrong model dynamics.