Theoretical Moments_ NaN

[jpfeifer]

My guess is similar and has been discussed in

IRFS Error in NK SOE Model

The unit root seems like the type of problem that occurs in open economy setup models. Essentially, after a shock that affects debt, the permanent income hypothesis kicks in and the household just consumes the annuity out of its assets forever, never decumulating debt. This is because both types of agents have the same discount rate. Usually, borrowers are modeled as more impatient

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