Dear professor jpfeifer:

When I run the shiyan.mod file in dynare, there is a trouble I don’t know how to solve it. The

error information coming up with the following message:

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

for 5 forward-looking variable(s)

The rank conditions ISN’T verified!

Error using print_info (line 46)

Blanchard Kahn conditions are not satisfied: indeterminacy due to rank

failure

Error in stoch_simul (line 81)

print_info(info, options_.noprint);

Error in shiyan2 (line 198)

info = stoch_simul(var_list_);

Error in dynare (line 120)

evalin(‘base’,fname) ;

Thank you very much for your help!

Best wishes!

the mod file as follows:

shiyan2.mod (944 Bytes)