Blanchard Kahn and rank conditions

Dynare help (legacy posts)
1

Hi everyone,
I run my model, but I have the following problem
"There are 13 eigenvalue(s) larger than 1 in modulus
for 12 forward-looking variable(s)

The rank conditions ISN’T verified!"

Can anyone help me please?Thanks a lot in advance.

Pd. attached is my modfile
model3.mod (2.5 KB)

2

You have 3 unit-roots!! You are doing something very wrong! Make sure that:

  • You solved and linearised the model correctly, as well as the values and ratios at steady-state. One way to verify this is to compute some values at the steady state and make sure they are positive, like the marginal utility of consumption, langrange multipliers, and quantities like consumption, output…
  • The timing of your variables is correct. This can be very important actually.
  • You have chosen your parametres well and with care.
3

Thanks a lot！

I have corrected my model.

4

But I also have problem with the corrected model.
Can anyone help me please?Thanks a lot in advance.

There are 13 eigenvalue(s) larger than 1 in modulus
for 12 forward-looking variable(s)

The rank conditions ISN’T verified!

??? Error using ==> print_info at 40
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in ==> stoch_simul at 71
print_info(info, options_.noprint);

Error in ==> modelH22 at 414
info = stoch_simul(var_list_);

Error in ==> dynare at 120
evalin(‘base’,fname) ;
modelH22.MOD (4.02 KB)