16 eigenvalue(s) larger than 1 in modulus for 15 forward-looking variable(s)

Stochastic simulations
1

I am currently solving for steady state, trying to replicate an IMF paper, whose codes I have been provided. However, whenever I try to run it - I get the following:

There are 16 eigenvalue(s) larger than 1 in modulus
for 15 forward-looking variable(s)

The rank conditions ISN’T verified!

Total computing time : 0h00m00s
Max difference between steady states:
0

I counted the number of endogenous variables and equations, which were 48 and satisfy the rank condition.

2

Usually there is either a timing or a sign error somewhere.

1 Like
4

thank you, I figured it out! my stochastic process had one more lag than necessary