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.