I am trying to replicate Fig.1 and Fig.2 of Rubio and Carrasco Gallego (2014) in an extended version of their model with 4 agents and 2 sectors. I realised that the results of the welfare analysis change considerably according to which of the four budget constraints I decide to ignore in the dynare code.
How should I choose which budget constraint to exclude? and shouldn’t the results remain the same regardless of this choice?
Thanks a lot