Blanchard and Kahn are not satisfied

Hi, i’m writing a linear nek model in dynare but when i try to run it i get the following error message: “The rank condition ISN’T verified!
Blanchard & Kahn conditions are not satisfied: indeterminacy”
What is the error? can someone help me? Thanks in advance.

nek.mod (1.8 KB)

Most often it’s a timing error or a mistake in closing the model.

Thanks for the reply. Should I try to change the steady state parameters?

You can try that, but it’s rather unlikely to be caused by parameter values alone, given that you are missing two unstable eigenvalues.

Thanks. Do you know what are the problematic equations (if any)? I don’t understand what is the erroe in the equations.

As I said, most often there is a timing error somewhere (or a fundamental problem in closing the model). Unfortunately, that is not easy to debug.

What does timing error mean? i’m new in dynare.

For example, having a predetermined variable like capital coded as k instead of k(-1).

Thanks so much.