Dear Professor,
Thank you for reading this post.
I'm a new dynare learner and matlab user. My problems are delivered as follows.
(1) I have encountered a problem of solving the steady state of the equation, which is displayed in the attachment, when I try to learn the DSGE model with a shadow banking system. Would you please help me out?
(2) I really have no idea what is the standard of choosing the lagged variables, would you please tell me about it?
Thank you so much!