Croce Paper: Long-run productivity risk: A new hope for prod

[salkiewi]

Hi there,

I try to figure out how Croce came up with his Dynare code in order to solve his production-based asset pricing model.
In particular, I do not understand how he came up with the "Investment" equation: "exp(G)"
Furthermore, two equations in "prices and returns": exp(q1) and exp(d). For the later I found the derivated equation in Croce "Welfare Costs, Long Run Consumption Risk, and a Production Economy." but I do not get where it comes from.


Can some one help me..please?!

I would highly appreciate it. Many, many thanks in advance.

Best,
Stefan


Ps.: I attached the code as well as the paper. I also attached the paper in which I found the equation for exp(d) (p. 20)

[salkiewi]

I solved the "exp(d)" problem. It was just a matter of definition.
However, I still do not get the other to equations.

Thanks for your help