Dear all,
Dynare says: "There are 4 eigenvalue(s) larger than 1 in modulus
for 2 forward-looking variable(s)
The rank condition ISN’T verified!"
But I have already add the predetermined variables, I am not sure why it is.
Thank you for your help.con.mod (678 Bytes)
you are missing a labor supply function, and you have the budget constraint twice.
now I add “n=1+phic(1+theta)/w;” , delete “c+k=rk(-1)+wn+(1-delta)k(-1)-thetac;” but it still show the same problem:
There are 4 eigenvalue(s) larger than 1 in modulus
for 2 forward-looking variable(s)
The rank condition ISN’T verified!
How can I solve this problem?
Thank you
You should remove:
predetermined_variables k;
because the way you defined k it is NOT predetermined. (alternatively you add +1 time unit for all occurrences of k)
As in your model k is not predetermined variable so yo should remove:
predetermined_variables k;
setting the parameter phi = 2.7 and the model runs well.
Exactly. Dynare requires either the stock at the end of period notation (which you used) or the beginning of period notation together with the predetermined_variables-command. Your mixture is not allowed.
Thank you all very much and it worked finally. Now I understand how Dynare work for my problem.
how do you realize the necessary amount of phi should be 2.7?
how do you realize the necessary amount of phi should be 2.7?