# BK conditions & Capital Adjustment Costs

**URL:** https://forum.dynare.org/t/bk-conditions-capital-adjustment-costs/2194
**Category:** Dynare help (legacy posts)
**Created:** [12 October 2011 14:17 UTC](https://forum.dynare.org/t/bk-conditions-capital-adjustment-costs/2194 "2011-10-12T14:17:13Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![samster](https://forum.dynare.org/letter_avatar_proxy/v4/letter/s/4491bb/32.png) [@samster](https://forum.dynare.org/u/samster)
#### Post date: [12 October 2011 14:17 UTC](https://forum.dynare.org/t/bk-conditions-capital-adjustment-costs/2194/1 "2011-10-12T14:17:13Z")

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Hi:

I am working with an open economy RBC model that has capital adjustments, which have been added to deal with the issue of indeterminacy. However for some values values (approx \> 4) no stable solution can be found, and at lower values the problem of indeterminacy shows up. Does this mean that there is a solution to be had somewhere between say 3.8 and 4?

I know this issue has been dealt with ad nauseam but i would appreciate your opinion. Thanks for your time