Dear all,

If I run the attached mod file, there will be a warning message below, why BK conditions are not satisfied given 5 vs 5? Thanks!

There are 5 eigenvalue(s) larger than 1 in modulus

for 5 forward-looking variable(s)

The rank condition ISN’T verified!

Error using print_info (line 48)

Blanchard Kahn conditions are not satisfied: indeterminacy due to

rank failure

REDnocaphab.mod (2.51 KB)

I only get

[quote]EIGENVALUES:

Modulus Real Imaginary

```
9.308e-18 9.308e-18 0
1.871e-12 -1.871e-12 0
0.06017 -0.06017 0
0.9 0.9 0
0.9 0.9 0
1.01 1.01 0
5.653 5.653 0
7.189e+15 -7.189e+15 0
9.305e+17 -9.305e+17 0
2.16e+30 -2.16e+30 0
```

There are 5 eigenvalue(s) larger than 1 in modulus

for 4 forward-looking variable(s)

The rank condition ISN’T verified![/quote]

This looks like a standard timing problem. Given that you define

`Ll Lb`

as predetermined, but

```
Ll+Lb=L;
```

you might want to have a look at [Timing of capital in two sector economy)