I get the following error message (see more below):
There are 8 eigenvalue(s) larger than 1 in modulus
for 8 forward-looking variable(s)
The rank conditions ISN’T verified!
According to Dynare 4.0.4 I have 8 eigenvalues higher than 1 and 8 forward-looking variables and the BK-conditions are not verified…
I included my mod-file if somebody is interested in this error message.
I added an extra variable x to be sure that in the model all variables have at least one version in the current state.
Any help will be appreciated! Thanks,
Teun
EIGENVALUES:
Modulus Real Imaginary
0 0 0
0 0 0
0 0 0
1.366e-017 1.366e-017 0
5.148e-017 5.148e-017 0
6.505e-013 6.505e-013 0
0.0154 -0.0154 0
0.9753 0.9753 0
1.044 1.044 0
1.098 1.098 0
6.315 6.315 0
Inf -Inf 0
Inf Inf 0
Inf Inf 0
Inf Inf 0
Inf Inf 0
There are 8 eigenvalue(s) larger than 1 in modulus
for 8 forward-looking variable(s)
The rank conditions ISN’T verified!
??? Error using ==> print_info at 62
Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure
Error in ==> stoch_simul at 44
print_info(info);
Error in ==> Model2novB at 313
info = stoch_simul(var_list_);
Error in ==> dynare at 102
evalin(‘base’,fname) ;
Model2novB.mod (6.11 KB)