Dear professor jpfeifer,
I am very happy to receive your reply!
I am sorry I’m not professional. I upload the dynare code again.
As you have mentioned, the BK condition is not satisfied. I have tried to find solutions in the forum. Your suggestion is to check the timing problem. I check it again and again, but the error is always “There are 6 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)”.
I spend a lot of time solving this problem. Sometimes if I change some parameters, the BK condition is satisfied. But mostly, it is not satisfied. I have three state variables (kt, ht, xt), and three multipliers (lamt, pt, qt). So, what’s the difference between state variable, co-state variable and forward-looking variable?
Thank you very much, professor.
YuanAB1.mod (4.0 KB)