If I’m not mistaken, we are supposed to have as many eigenvalues larger than one as we have forward looking variables. I have 5 forward looking variables (both of them are +1), I have 5 eigenvalues greater than one but this message appears :
*Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Local state space iteration (second order).
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.
[mex] Quasi Monte-Carlo sequence (Sobol).
[mex] Markov Switching SBVAR.
Starting Dynare (version 4.4.3).
Starting preprocessing of the model file …
Substitution of endo leads >= 2: added 1 auxiliary variables and equations.
Found 16 equation(s).
Evaluating expressions…done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives:
- order 1
- order 2
Processing outputs …done
Preprocessing completed.
Starting MATLAB/Octave computing.
STEADY-STATE RESULTS:
c 0.326759
r_f 0.01375
w 1.71365
v 0.0578358
l 0.200324
k 3.19604
i 0.079901
y 0.528131
a 1
b 0.85125
d 0.301034
g 0.105626
tb 0.0158439
nd 0
h 1.15228
Residuals of the static equations:
Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : 0
EIGENVALUES:
Modulus Real Imaginary
4.613e-017 -4.613e-017 0
1.313e-015 1.313e-015 0
0.904 0.904 0
0.9163 0.9163 0
0.9538 0.9538 0
0.9972 0.9972 0
1.014 1.014 0
1.02 1.02 0
4.695e+017 4.695e+017 0
2.101e+019 2.101e+019 0
Inf -Inf 0
**There are 5 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)
The rank condition ISN’T verified!
error: Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure
*error: called from:
error: c:\dynare\4.4.3\matlab\print_info.m at line 48, column 9
error: c:\dynare\4.4.3\matlab\stoch_simul.m at line 98, column 5
error: c:\dynare\work\incomplete_markets_new.m at line 237, column 6
error: c:\dynare\4.4.3\matlab\dynare.m at line 180, column 1
Where could the problem come from ?
PS : Happy Easter to all of you !