Dynare forums

Thanks again.
I had a problem with the results (economic view) of the nonlinear version.

I could fix the linear version too following your advice in another post:

BK is almost always a timing problem.

But again it was an arbitrary solution. For example the Financial accelerator of BGG says in paper says

Code: Select all

 
 RK(+1) = rho(+1)  + R(+1)


where ''rho'' is a premium on interest rate

I had to make the lags of these equal to zero to make BK satisfy ... Is it right ? probably not.

When you want to implement BGG, you should look at https://sites.google.com/site/ambropo/dynarecodes